A business owner is reviewing her company's cash balance to determine if she has enough to pay the outstanding past three months' rent.What is the accounting term for this unpaid rent?

Question

Quizplus · Accepted Answer

Accrued expense refers to expenses that have been incurred but not yet paid, such as the outstanding past three months' rent in this scenario. Mortgage, short term note, and line of credit all refer to forms of financing or borrowing, and do not necessarily relate to unpaid rent.

A Business Owner Is Reviewing Her Company's Cash Balance to Determine