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

• A. Do not record the expense until the employee is paid.
• B. Accrue the expense in March's financial statements.
• C. Record the expense in March when the payment is made.
• D. Accrue the expense for the last five days of February in February's financial statements.

Answer: (D)