PRC-1 · Chapter 1 · Question 99 of 100
An expense that has been incurred by the business during the current period but remains entirely unpaid at the statement of financial position date is classified as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Current Liability
Explanation
Unpaid or 'accrued' expenses represent short-term obligations to pay suppliers or service providers within the next operating cycle, making them current liabilities.
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