an-employee-works-the-last-five-days-of-february-but-is-paid-on-march-5th-how-sh

Question

An employee works the last five days of February but is paid on March 5th. How should this be recorded in accrual accounting?

Accepted Answer

Accrue the expense for the last five days of February in February's financial statements.

Answer

Do not record the expense until the employee is paid.

Answer

Accrue the expense in March's financial statements.

Answer

Record the expense in March when the payment is made.