Question

Sylvia records the purchases of inventory in the current accounting period even though she will actually pay for the inventory in the next accounting period. Which accounting principle does she comply with?

Answer 1

The answer is C.

Step-by-step explanation:

Answer 2

Accrual Basis of Accounting

The accrual basis of accounting are expenses that meet with the relevant revenues and/or are notified when the expense happens, not when the payment is cleared. The completion of accrual accounting is an income statement that sufficiently covers the profitability of a business during a definite time period.