Where the amount of cash paid for office expenses during the year is less than the amount of office expenses recognised in the income statement under the accrual accounting approach, the difference is recorded in the balance sheet as:

Question

Quizplus · Accepted Answer

Accrued office expenses represent amounts that have been incurred (recognized in the income statement) but not yet paid in cash, thus creating a liability on the balance sheet. This reflects the accrual basis of accounting, where expenses are recognized when incurred, not necessarily when paid.

Where the Amount of Cash Paid for Office Expenses During