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Q46

Content Q46

6 Answers

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Hi Helen,

Ok, I see what you’re saying. Thanks for pointing it out! You’re referring to this part of chapter 6.
“In accrual accounting money is considered income at the time it’s earned – in other words the time that a sale was made – and not when the actual cash was collected. Likewise, money is considered an expense at the time something is purchased, not when it’s actually paid for in hard currency, check or by credit card.”

If I were to reword it, this is what I’d say:

“In accrual accounting sales are considered income at the time it’s earned – in other words the time that a sale was made – and not when the actual cash was collected. Likewise, purchases are considered expenses at the time of purchase, not when it’s actually paid for.”

Is that a clearer explanation? If so, I’ll update the content.<

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