An Expense Incurred in 2010 Is Not Paid Until 2011

question 29

Multiple Choice

An expense incurred in 2010 is not paid until 2011. Using the accrual basis of accounting, the expense should appear on:

• A)the 2010 income statement.
• B)the 2011 income statement.
• C)neither the 2010 nor the 2011 income statement.
• D)both the 2010 and 2011 income statements.

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