PRC-1 · Chapter 4 · Question 5 of 100
An expense that has been incurred in the current accounting period but remains unpaid at the year-end is formally termed as an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Accrued expense
Explanation
Any expense which is related to the current accounting period but is not paid till the year-end, and is instead payable in a subsequent year, is termed an accrued expense.
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