Question

Give the word / term or phrase which can substitute each of the following statement.

Expenses which are due but not paid at the end of the year.

Answer 1

Outstanding Expenses

Explanation: Expenses which are due but not paid at the end of the year are outstanding expenses. The benefit of such expenses has been derived in the current year but the payment of these has not been made yet. Outstanding expenses are classified under personal accounts because they represent those persons to whom the payment is to be made. Such expenses are shown on the Liabilities side of the Balance Sheet.