Accrued expenses are expenses that have been incurred but not yet paid or recorded. This means that the company has received goods or services but has not yet paid for them, or has not yet recorded the payment in their books. Examples of accrued expenses include salaries and wages, rent, and utilities.

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Accrued Expenses Are

Question 45

Multiple Choice

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) incurred but not yet paid or recorded.
D) incurred and already paid or recorded.

Correct Answer: