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Does the accrual method apply to the purchase of equipment?

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Question added by Rana Alnajjar , Web developer , Lebcards
Date Posted: 2016/12/21
manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

The accrual method does apply to the purchase of equipment (as well as applying to revenues and expenses). ... Under the accrual method, on December 29 the company should debit the asset account Equipment and credit the liability account Accounts Payable.

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
by Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

  yes it can be applied when the purchase done as on credit

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