Explain when revenues and expenses are recognized and how this forms the basis for accrual accounting. You have been hired as the controller for an up and coming advertising firm. At the end of your first month, you receive word that your firm has run a successful anti-emissions campaign for volkswagen automotive. The campaign was worth ,000 but will not be paid until the following month. You purchase a truck for ,000 that has a useful life of 10 years. The truck will be used evenly over those 10 years and should be depreciated as such. On january 1st, 2015 your company secured a ,000 bank loan. The bank loan is for a period of five years and its interest rate is 6%. There are no payments required until the end of the fifth year when both the principal and interest are due in full.