Freddie Handel began a music business in July 2014. Handel prepares monthly financial statements and uses the ac basis of accounting. The following transactions are Handel Company's only activities during July through October: EEE (Click on icon to view transactions.) In which month should Handel record the cost of the music as an expense? O A. August
O B. October
O C. September
O D. July
The correct answer is d.
Under accrual system,expense is recorded as soon as it is accrued.