Asked by Ashley Minaya on May 08, 2024
Verified
Prior to the adjusting process, accrued expenses have
A) not yet been incurred, paid, or recorded
B) been incurred, not paid, but have been recorded
C) been incurred, not paid, and not recorded
D) been paid but have not yet been incurred
Accrued Expenses
Costs that a company has incurred but hasn't paid for yet, which show up as liabilities on the balance sheet.
- Determine the various classifications and functions of adjusting entries in accounting, such as accrued revenues, accrued expenses, deferred revenues, and prepaid expenses.
- Discern the key principles of revenue recognition and the matching concept of expenses in the context of financial statement assembly.
Verified Answer
ME
Mohamed ElkasasMay 09, 2024
Final Answer :
C
Explanation :
Accrued expenses are those that have been incurred but not yet paid or recorded in the financial statements. This necessitates an adjusting entry to accurately reflect these obligations in the accounting records.
Learning Objectives
- Determine the various classifications and functions of adjusting entries in accounting, such as accrued revenues, accrued expenses, deferred revenues, and prepaid expenses.
- Discern the key principles of revenue recognition and the matching concept of expenses in the context of financial statement assembly.