Question

State with reasons whether the following statement is true or false.
Outstanding expenditure is a nominal account.

• A. True
• B. False

Answer 1

The correct option is B False

Outstanding expenditure are those expenses which have been incurred and consumed during an accounting period and are due to be paid but are not paid.

Examples include outstanding salary, outstanding rent, etc.

Outstanding expenditure are recorded in the books at the end of an accounting period to show true numbers of a business.

Outstanding expenses is a personal account and is shown in the liability side of a balance sheet.