Accrued expenses are
A)paid and recorded in an asset account before they are used or consumed.
B)paid and recorded in an asset account after they are used or consumed.
C)expenses that have not yet been paid but have been incurred and have been recorded for the first time by an adjusting entry.
D)incurred and already paid or recorded.

Question

Quizplus · Accepted Answer

Accrued expenses are expenses that have been incurred but not yet paid, and they are recorded through adjusting entries to reflect the expense in the period in which it occurred, not when the payment is made. This aligns with the matching principle of accounting, which states that expenses should be recognized in the period in which they help to generate revenues.

Accrued Expenses Are