1
Question
Recording of outstanding salary is based on ____________.
Recording of outstanding salary is based on ____________.
Open in App
Solution
The correct option is C Accrual Concept
Outstanding salary refers to that amount which has become due but not actually paid. Thus, it is recorded in the books according to accrual concept which says that revenues should be recorded when they are earned and not when the proceeds are received in cash and expenses should be recorded when they are incurred and not when they are actually paid in cash.
Outstanding salary refers to that amount which has become due but not actually paid. Thus, it is recorded in the books according to accrual concept which says that revenues should be recorded when they are earned and not when the proceeds are received in cash and expenses should be recorded when they are incurred and not when they are actually paid in cash.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
