An accrued expense can be described as an amount
A) paid and matched with earnings for the current period.
B) paid and not matched with earnings for the current period.
C) not paid and not matched with earnings for the current period.
D) not paid and matched with earnings for the current period.

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but has not been paid yet, but it has been matched with earnings for the current period. Option D fits this definition. Option A is incorrect because it refers to a paid expense that has been matched with earnings for the current period. Option B is incorrect because it refers to a paid expense that has not been matched with earnings for the current period. Option C is incorrect because it refers to an expense that has not been paid or matched with earnings for the current period.

An Accrued Expense Can Be Described as an Amount