Expenses incurred but not yet paid or recorded are called
A) prepaid expenses.
B) accrued expenses.
C) interim expenses.
D) unearned expenses.

Question

Quizplus · Accepted Answer

Expenses that have been incurred but not yet paid or recorded are called accrued expenses. Examples include salaries and wages owed to employees at the end of a pay period, but not yet paid out, or interest owed on loans that has not yet been paid. Accrued expenses are typically recorded as a liability on the balance sheet, and are recognized as an expense on the income statement when they are paid.

Expenses Incurred but Not Yet Paid or Recorded Are Called