Under accrual accounting, expenses are recognized in the books of a company when they are incurred, irrespective of whether an actual cash transaction has occurred. This means that the expenses will be recorded in general ledger accounts assigned to them as they occur and accounted for to present a true picture of the financial state…

From the bank’s point of view, when a credit card is used to pay a merchant, the payment causes an increase in the amount of money the bank is owed by the cardholder. From the bank’s point of view, your credit card account is the bank’s asset. Hence, using a debit card or credit card…