Accounting Online Program Certification Practice Test 2025 - Free Certification Practice Questions and Study Guide

To determine the amount that should be included in Clare's accounts for Interflora expenses, it is crucial to consider the nature of these expenses. In accounting, expenses are recorded when they are incurred, regardless of when the payment is made. This principle is known as the accrual basis of accounting.

The correct choice reflects the total expenses that have been incurred for Interflora during the year and considered appropriate for accounting purposes. This could include various types of expenses such as delivery fees, flower arrangements, and other associated costs that are relevant to the Interflora transactions made throughout the year.

In reviewing the other amounts, each figure would derive from either miscalculations or the inclusion of expenses not applicable to the period in question. For instance, these could involve expenses that were prepaid or not accurately accounted for based on the timing of the transactions. Therefore, the choice that represents £1,775 indicates that it encompasses all legitimate costs incurred without any omissions or unnecessary inclusions from other periods.