If ₹20,000 of salary is due but unpaid at year-end under an accrual framework, it should generally be:

Type: MCQ • Marks: 1

A. Ignored until payment

B. Recognised as an expense with a corresponding liability

C. Recorded as an asset

D. Treated as capital expenditure

Explanation

The expense has been incurred even though payment has not yet been made.

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UPSC Principal & Vice Principal Management Finance Administration

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