Page 42 - PowerPoint Template
P. 42
Expense Recognition
Expenses are recorded in the accounting period in
which it has been involved for a business revenue.
Expenses are recognized when they are incurred even
if payment has not been made.
The goal - to find out the actual amount of revenue and
expenditure for a financial period.
Example:
Pn. Tina has recorded expenses of RM2,000 for the
utility in December 2012, although payment will only be
made in January 2013.
Explanation:
Pn. Tina comply the concept of expense recognition as
an expense of the current period should be recorded in
the current accounting period.
42
