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    MKTHI's Avatar
    MKTHI Posts: 2, Reputation: 1
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    #1

    Jan 31, 2009, 10:18 PM
    GAAP invoice rpayment ecordng
    According to GAAP is it acceptable to record an invoice payment in the month it is paid vs the month it is received?
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #2

    Feb 1, 2009, 10:51 AM

    As this sounds like a homework question please try to answer yourself and give your reasoning. Then I will let you know how you're doing. Also see these links:

    Ask Me Help Desk - Announcements in Forum : Accounting

    Ask Me Help Desk - Announcements in Forum : Homework Help

    Homework should not be posted here. Please let me know if this is homework and I will ask it to be moved.
    MKTHI's Avatar
    MKTHI Posts: 2, Reputation: 1
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    #3

    Feb 1, 2009, 12:49 PM

    This isn't a homework question just tryng to interpret correct way to post
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #4

    Feb 1, 2009, 01:17 PM

    In GAAP costs should be recorded in the period (month) that the cost was incurred, regardless of when the invoice is received or the cash paid.

    However, if you have a small business (like a sole proprietorship) it is acceptable not to follow GAAP and use cash accounting and therefore only recognize expenses when they are paid.

    Does that clear it up for you?
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