The Drawer Writes the Cheque

question 104

True/False

The drawer writes the cheque.

---

Definitions:

Expense Account

An account where business-related expenses are recorded, often used for tracking purposes for budgeting or tax deductions.

Incurred

Expenses, losses, or liabilities that have been suffered or assumed in the course of conducting business.

Matching Principle

An accounting concept that requires expenses to be recorded in the same period as the revenues that are generated as a result of those expenses.

Expenses

It refers to the outflow of cash or other valuable assets from a person or company to another entity as a result of purchasing goods or services.