[Accounting Questions] please help me to answer the following question?
[Accounting Questions] please help me to answer the following question?
If company's suppliers delayed to give you receipts, should
company still record expenses?
If so, it is in what accounting principle?
Thanks for ur help!
Answers:
Chosen Answer
Sandy: You record the expense not so much because of any accounting principle but because of contract law. You've paid him, haven't you? It doesn't matter whether he gives you a receipt. He's accepted your money, there was a valid contract, a commercial transaction has taken place, and you should record it accordingly. Focus on the substance and don't be misled by the form, or lack of it.
2008-01-20 05:57:42
Sandy: You record the expense not so much because of any accounting principle but because of contract law. You've paid him, haven't you? It doesn't matter whether he gives you a receipt. He's accepted your money, there was a valid contract, a commercial transaction has taken place, and you should record it accordingly. Focus on the substance and don't be misled by the form, or lack of it.
2008-01-20 05:57:42
BeachLover: Of course you still have to record the expense. It is a Matching principle in Accounting. I had hoped for an accurate answer for the previous responder, based on the flawed assumption that he/she was an accountant.
2008-01-20 13:07:38
2008-01-20 13:07:38