ACCA FA · Chapter 7 · Question 10 of 12
How is an accrued expense presented in the statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) As a current liability
Explanation
An accrued expense is a cost incurred during the period that has not yet been paid or invoiced. It is an amount owed, normally settled within twelve months, so it is presented as a current liability. A prepayment, by contrast, is a current asset.
More Accruals, prepayments and receivables MCQs
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