MinhT1
Expert Alumni

Business & farm

No.

 

If you use the accrual method, the cost of the flights paid in 2023 and to take place in 2024 should be in Prepaid expenses on the balance sheet, and not in expenses on the Profit and Loss account.

 

In 2024, when the flights are cancelled and reimbursed, the reimbursement will cancel out the prepaid expenses.

 

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