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 recognized 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 that are due to be paid in the following year are an example of an accrued expense. Option A is not an example of an accrued expense as the office supplies have already been purchased and expensed. Option C is not an example of an accrued expense as it is a non-cash expense related to the depreciation of assets. Option D is not an example of an accrued expense as rent recognized during the period has already been paid.

Which of the Following Is an Example of an Accrued