Question

State whether the following statements are True or False:
Outstanding expenses are the assets of business.

Answer 1

False. Outstanding expenses are the liabilities of the company. By outstanding expenses we mean that expenses which are due for payment but payment is not made yet. Outstanding expenses are an obligation that is to be met by the company. Liability is an obligation to be met or a financial debt that occurs in the course of business. Hence. Outstanding expenses will appear on the liabilities side of the balance sheet.