If a Resource Has Been Consumed but an Invoice Has

question 50

Multiple Choice

If a resource has been consumed but an invoice has not been received at the end of the accounting period, then

• A) an expense should be recorded when the invoice is received.
• B) an expense should be recorded when the cash is paid out.
• C) an adjusting entry should be made recognizing the expense.
• D) it is optional whether to record the expense before the invoice is received.