BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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paid and recorded in an asset account before they are used or consumed.
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paid and recorded in an asset account after they are used or consumed.
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incurred but not yet paid or recorded.
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incurred and already paid or recorded.
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Detailed explanation-1: -An accrued expense-also called accrued liability-is an expense recognized as incurred but not yet paid. In most cases, an accrued expense is a debit to an expense account. This increases your expenses. You may also apply a credit to an accrued liabilities account, which increases your liabilities.
Detailed explanation-2: -Accrued expenses: Expenses incurred but not yet paid in cash or recorded.
Detailed explanation-3: -Accrued expenses are expenses that have occurred but are not yet recorded in the company’s general ledger. This means these expenses will not appear on the financial statements unless an adjusting entry is entered prior to issuing the financial statements.
Detailed explanation-4: -An accrued expense, also known as an accrued liability, is an accounting term that refers to an expense that is recognized on the books before it has been paid. The expense is recorded in the accounting period in which it is incurred.
Detailed explanation-5: -Accrued expenses are listed on a company’s balance sheet. They should appear at the end of the company’s accounting period. Adjustments are made using journal entries that are entered into the company’s general ledger.