Asked by Fahim Sultanzada on May 08, 2024
Verified
Which of the following is an example of an accrued expense?
A) salary owed but not yet paid
B) fees received but not yet earned
C) supplies on hand
D) a two-year premium paid on a fire insurance policy
Accrued Expense
Expenses incurred but not yet paid or recorded at the end of an accounting period, recognizing expenses when they are incurred, not when they are paid.
Salary Owed
The amount of money that an employer is required to pay to an employee for work performed, which has not yet been paid at the statement date.
- Administer and modify records for accrued liabilities, such as payrolls and earnings.
Verified Answer
BR
Barri’ Ragland-EnglishMay 14, 2024
Final Answer :
A
Explanation :
An accrued expense refers to an expense that has been incurred but not yet paid. Of the options given, salary owed but not yet paid best fits this definition. Fees received but not yet earned refer to unearned revenue, supplies on hand are inventory, and a two-year premium paid on a fire insurance policy is a prepayment.
Learning Objectives
- Administer and modify records for accrued liabilities, such as payrolls and earnings.
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