What is the standard of accrual accounting to recognize the current income and expenses?

Accrual accounting.

It is a financial treatment system that recognizes the income and expenses of the current period based on receivables and payables.

First, accrual accounting is also known as accrual.

It is a principle that determines the attribution period of income and expenses based on the occurrence of rights and responsibilities. All expenses that have been received and incurred or should be borne during the current period, regardless of whether they have been received or paid, shall be treated as the recipients and expenses of the current period; Conversely, income and expenses that are not part of the current period should not be treated as income and expenses for the current period, even if the amount is received or paid in the current period. Case InterpretationArticle 9 of China's Accounting Standards for Business Enterprises I Basic Standard stipulates that enterprises should carry out accounting recognition, measurement and reporting on the basis of accrual accounting.

Second, accrual accounting can more accurately describe the operating performance and financial status of an enterprise. The opposite is the cash basis.

That is, as long as cash is received, income is recognized, and as long as cash is paid, it is used as an expense. For example, a company provided 3.9 million yuan of goods to customers in that year, but only received 3.3 million yuan of payment due to the credit sales provided to customers. In that year, the enterprise also incurred expenses of 2.6 million yuan, but only paid 2.4 million yuan, so the calculated profits were different according to the accrual basis and the cash basis.

Profit under accrual accounting = income realized 3.9 million - expenses incurred 2.6 million = 1.3 million profit under the cash system = income received 3.3 million - expenses paid 2.4 million = 900,000.

Third, the so-called accrual system, that is, "when rights and responsibilities occur, they must be recorded", that is, the actual "incurred" income, costs, expenses, etc., in the current period, should be included in the current period. For example, if you buy a batch of goods, although you have not paid for it, it should be included in "Liabilities - Accounts Payable".

Subjects. In addition, the receipt of relevant goods should also be regarded as a "cost", and it cannot be regarded as a cost because the payment has not yet been made. For example, if a batch of goods is sold in the current period, although the other party does not pay, it should be included in the "income", which is the accrual basis.

Balance sheet in an accounting statement.

Income statements are prepared on an accrual basis. Another accounting basis is the "cash basis", that is, it only looks at whether the money really flows in and out. Financial statement.

in the Cash Flow Statement.

belongs to this column. In the cash flow statement, "operating cash flow" can roughly correspond to the "income statement", "investment cash flow" corresponds to the balance sheet "asset changes", and "financing cash flow" corresponds to the balance sheet "liabilities, owners' equity".

changes".

Hello classmates, I'm glad to answer for you!

Accrual accounting is a financial treatment system that recognizes income and expenses for the current period based on receivables and payables.

Hope mine can help you solve the problem, if you are satisfied, for yo.

Gordon Online School. Gordon wishes you a happy life!

Legal analysis: The criteria for recognizing income and expenses for the current period under the accrual basis are as follows: 1. Interest income from loans that are overdue for less than half a year; 2. Current income of financial institutions; 3. Investment income; 4. Interest expense on fixed deposits; 5. Current expenditure of financial institutions; 6. Bulk expenses such as fixed asset repair, leasing, purchase of low-value consumables, and security defense; 7. Amortization of intangible assets; 8. Depreciation of fixed assets; 9. All kinds of taxes, etc.

Legal basis: Article 63 of the Accounting Standards for Small Enterprises of the People's Republic of China For labor services started and completed in the same fiscal year, the income from the provision of labor services shall be recognized when the service transaction is completed and the payment is received or the right to receive payment is obtained. The amount of income from the provision of services is the contract or agreement price received or receivable from the recipient of services.

Confirmation: 1. Accrual accounting.

Revenue and expenses are recognized on the basis of time, which is based on the fact that rights have been formed or obligations (liabilities) have been incurred.

2. The accrual basis for the current period refers to the receivables and payables as the standard for determining the income and expenses of the current period, regardless of monetary funds.

Whether it was received or paid in the current period.

3. Accrual accounting is a principle that determines the attribution period of income and expenses based on the occurrence of rights and responsibilities. refers to all expenses that have been received and incurred or should be borne during the current period, regardless of whether they have been received or paid, and are treated as income and expenses for the current period; Conversely, income and expenses that are not part of the current period should not be treated as income and expenses for the current period, even if the amount is received or paid in the current period.

Refers to the method of determining the income and expenses of the current period in accounting. That is, all income belonging to the current period, regardless of whether the payment is received or not, is treated as current income; Income that is not part of the current period, even if received in the current period is treated only as advance receipts and not as current income. All expenses incurred in the current period, whether or not they are expended, are treated as current expenses; Expenses that are not current periods, even if they are incurred in the current period, cannot be included in current expenses.

According to the accrual principle, the income and expenses that should be included in the current period include a batch of goods sold in the current period, and the current water and electricity bills that have been collected and have not yet been paid. If the accrual basis is included in the current income, it is the current income, and the expenses included are the current expenses.

The accountant should record in the books of accounts the increase in income for the current period for all income that has been realized for the current period, regardless of whether the payment has been received or not. For income that does not belong to the current period, even if the payment is received, the accountant cannot record the increase in income for the current period in the books of accounts.

The accountant should record in the books of accounts the increase in the expenses of the current period for all expenses that have been incurred or should be borne in the current period, regardless of whether the payment has been made or not. For expenses that do not belong to the current period, even if the payment has already been made, the accountant cannot record the increase in the current period in the books of accounts.

In layman's terms, you have to recognise your income regardless of whether you receive money in the month you sell, and you have to pay taxes and carry-over costs that month, and you can't wait until you receive the money to recognize your income.

The same is true for expenses, for example, if you buy equipment and have not paid, but in fact, even if the cost is incurred, it will be confirmed in the current period, and you can't wait until you pay to calculate the occurrence of the expense, and the salary is also confirmed in the current month, in fact, the salary of the current month will be paid next month.

The current period you are talking about is the month in which the business takes place.

a. The income from the sale of products in the current period that the other party temporarily owes.

d. The interest on the current month's loan that has not been paid.

According to the requirements of the accrual basis, the income or expenses attributable to the current period are the income from the sale of products in the current period that the other party temporarily owes and the interest on the current month's borrowings that have not been paid. Expenses incurred in the current period that are liable to be compensated from the income of the current period, whether or not actually paid or unpaid monetary funds in the current period, shall be treated as expenses for the current period; All income attributable to the current period incurred in the current period, regardless of whether monetary funds actually received or not received in the current period, shall be treated as income for the current period. The implementation of such a system is conducive to accurately reflecting the cost level and profit and loss situation of each period.

So, choose AD.