Outstanding expenses are shown ________________.

By way of deduction in the Income statement

No worries! We‘ve got your back. Try BYJU‘S free classes today!

As a current asset

No worries! We‘ve got your back. Try BYJU‘S free classes today!

As a long-term liability

No worries! We‘ve got your back. Try BYJU‘S free classes today!

As a current liability

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D As a current liability
Outstanding expenses are those expenses which are incurred/due but are not paid by the company yet. It is an obligation on the part of the company to make the payment for the same and hence is a liability for the company.

Suggest Corrections

Similar questions

Current assets of a business firm should be financed through:

(a) Current liability only

(b) Long-term liability only

Current assets of a business firm should be financed through

(a) current liability only

(b) long-term liability only

A fixed asset should be financed through

(a) a long term liability

(b) a short term liability

(a) Current Liabilities of a Company are Rs. 3,50,000. Its current ratio is 3 : 1 and acid test ratio is 1.75 : 1. Calculate the value of Current assets, Liquid assets and Inventories.

(b) Current Assets of a Company are Rs. 3,60,000. Its Current ratio is 2.4:1 and acid test ratio is 1.3:1. Calculate the value of Current liabilities, liquid assets and inventories.

(c) Working Capital of a company is Rs,30,000. Its Current ratio is 2.5:1. Calculate the value of (i) Current assets, (ii) Current liabilities, (iii) Acid test ratio, assuming inventories of Rs. 26,000.

Q. a) A decrease in current liabilities increases working capital
b) Funds flow refers to change in long-term funds.
Of these

Join BYJU'S Learning Program

Outstanding expenses are shown ________________.

The correct option is D As a current liabilityOutstanding expenses are those expenses which are incurred/due but are not paid by the company yet. It is an obligation on the part of the company to make the payment for the same and hence is a liability for the company.

The correct option is D As a current liability
Outstanding expenses are those expenses which are incurred/due but are not paid by the company yet. It is an obligation on the part of the company to make the payment for the same and hence is a liability for the company.