Asked by Victoria Grose on May 31, 2024
Verified
Electric bill to be paid next month.
A) Prepaid expense
B) Accrued expense
C) Unearned revenue
D) Accrued revenue
E) None of these choices
Accrued Expense
Expenses that have been incurred but not yet paid or documented in the financial statements.
Electric Bill
A statement that specifies the amount of money charged for the consumption of electricity over a specific period.
Paid
Refers to the settlement of an obligation or receipt of money or goods in exchange for services or goods provided.
- Discover and sort various classes of accounts based on transactional business processes.
Verified Answer
TW
Timisiha WalkerMay 31, 2024
Final Answer :
B
Explanation :
An electric bill that will be paid next month represents an expense that has been incurred but not yet paid, so it is an accrued expense.
Learning Objectives
- Discover and sort various classes of accounts based on transactional business processes.