Which of the following is an example of an accrued expense?
A) Office supplies purchased at the beginning of the year and debited to an expense account.
B) Property taxes incurred during the year, to be paid in the first quarter of the subsequent year.
C) Depreciation expense.
D) Rent earned during the period, to be received at the end of the year.

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but not yet paid. Property taxes incurred during the year, but not paid until the following year, are an example of an accrued expense. Option A is an example of a prepaid expense, Option C is an example of a non-cash expense, and Option D is an example of unearned revenue.

Which of the Following Is an Example of an Accrued