Which accounting principle requires companies to record expenses when they are incurred, not when they are paid?
Which accounting principle requires companies to record expenses when they are incurred, not when they are paid?
اکاؤنٹنگ کے کون سے اصول کے تحت کمپنیوں کو اخراجات ریکارڈ کرنے کی ضرورت ہوتی ہے جب ان کے اخراجات ہوتے ہیں ، نہ کہ ان کو ادائیگی کی جاتی ہے؟
Explanation
The Accrual Principle records expenses when they are incurred, regardless of payment timing.
It ensures financial statements reflect true financial performance during a period.