Under French accrual accounting, expenses are recognized

Under French accrual accounting, expenses are recognized

Under French accrual accounting, expenses are recognized:

A. When paid

B. When incurred

C. At year-end only

D. When invoiced by supplier

Answer: B

Explanation: French accounting follows the accrual basis (comptabilité d’engagement), which requires expenses to be recognized when they are incurred (i.e., when the company receives the goods or services), not when the payment is made. This ensures that expenses are matched with the revenues they generate in the same period.