Question

Expense incurred but not paid is called ____________.

• A. Outstanding expense.
• B. Prepaid expense.
• C. Income Received in Advance.
• D. None.

Answer 1

The correct option is A Outstanding expense.

Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made. Such an item is to be treated as a payable for the business. Examples – Outstanding salary, outstanding rent, outstanding subscription, outstanding wages, etc.