Practice Accrual Concept - 15.3.9 | 15. Accounting Principles and Concepts | Management 1 (Organizational Behaviour/Finance & Accounting)
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Accrual Concept

15.3.9 - Accrual Concept

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Practice Questions

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Question 1 Easy

Define the Accrual Concept in accounting.

💡 Hint: Think about when transactions actually occur.

Question 2 Easy

What is the primary difference between Accrual Accounting and Cash Basis Accounting?

💡 Hint: Consider the timing of recording transactions.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does the Accrual Concept in accounting state?

Revenues are recognized when cash is received
Revenues are recognized when earned
Expenses are recorded at year-end

💡 Hint: Think about when transactions are actually recognized.

Question 2

In accrual accounting, when is expense recognized?

True
False

💡 Hint: Consider the timing of expense recognition.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A freelancer completes a graphic design project in October worth ₹80,000 and sends the invoice, but the payment is received in December. How should this be recorded?

💡 Hint: Identify the completion date of the service and apply the accrual concept.

Challenge 2 Hard

A company pays an annual insurance premium of ₹24,000 in January for coverage that runs through December. How should this be reported in each month’s financial statements?

💡 Hint: Remember to spread costs over the period they're applicable.

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