PRC-1 · Chapter 2 · Question 99 of 100
When 'Vortex Traders' prepares its monthly accounts, it needs to record the accrual of staff bonuses earned but not yet paid. Which book of prime entry is utilized?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) General Journal
Explanation
Accruing for an expense means recognizing a liability without an immediate cash outflow. Since there's no cash movement and it’s an internal adjustment, it goes in the General Journal.
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