Which of the following can Tim not recognise as an expense assuming all relate to his business?
A) Payment of interest on a loan of $100
B) A suspicion that John will not return the $26 that he borrowed from Tim
C) Payment of electricity for the month of $50
D) Use of water to which Tim will be invoiced in two months

Question

Quizplus · Accepted Answer

Tim cannot recognize a suspicion or uncertainty about whether John will return the borrowed $26 as an expense because it is not a definite and measurable transaction. All the other options are clear and measurable expenses.

Which of the Following Can Tim Not Recognise as an Expense