Question

When outstanding expense is recorded ___________ is credited.

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

Answer 1

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.