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Question
Outstanding expense will be ______ to respective expense.
Outstanding expense will be ______ to respective expense.
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Solution
The correct option is B added
Outstanding expenses are those expenses which have been incurred and consumed during an accounting period and are due to be paid but are not paid. In Profit and Loss account, outstanding expenses will be added to the respective expense as it relates to the current year (accrual). In the Balance Sheet, an outstanding expense will appear as a liability.
Outstanding expenses are those expenses which have been incurred and consumed during an accounting period and are due to be paid but are not paid.
In Profit and Loss account, outstanding expenses will be added to the respective expense as it relates to the current year (accrual). In the Balance Sheet, an outstanding expense will appear as a liability.
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