Which of the following is an accrued expense?
A)depreciation
B)employees' salaries
C)interest revenue
D)rental expense paid three months in advance

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but not yet paid. Employees' salaries are an example of accrued expenses because the employees have already worked and earned the salary, but the company has not yet paid them. Depreciation (A) is not an accrued expense, as it is a non-cash expense related to the wear and tear of long-lived assets. Interest revenue (C) is not an expense at all, but revenue earned by the company. Rental expense paid three months in advance (D) is a prepaid expense, not an accrued expense, as it is an expense that has been paid in advance but has not yet been incurred.

Which of the Following Is an Accrued Expense