Generally Accepted Accounting Principles require that we use the accrual basis of accounting to record...
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Accounting
Generally Accepted Accounting Principles require that we use the accrual basis of accounting to record revenues when earned and expenses when incurred.
Considering the transaction: ABC Corp. purchases equipment for $500,000 on account on July 1, 2016. Their fiscal year ends on December 31. If they Debit Equipment Expense for $500,000 and Credit Accounts Payable for $500,000, is this correct?
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