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Question

When outstanding expense is recorded ___________ is credited.

A
Outstanding Expense account
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B
Prepaid expense
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C
Outstanding income
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D
None of the above
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Solution

The correct option is A Outstanding Expense account
As such, the amount of expenditure outstanding that has not yet been taken into the books is credited to the Expenditure Outstanding a/c. Expenses Outstanding a/c is a personal account with a credit balance. The balance indicates the amount that is owed by the organisation on account of unpaid expenditure.

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