Question

A business has paid the rent for the period jan-march 2016, in june 2016 in which year financial statements this rent expenses will be recorded

Answer 1

This is because; the current accounting period for that company is the year of 2016.



Thus, the outstanding expenses cleared in a particular year would be recorded in that year only. However, if it was cleared in the next year, then it would have been recorded under next year’s financial statements.