Which of the following is an expense?
A) Prepaid rent
B) Dividends paid
C) Purchase of equipment
D) Wages owing but not paid at the end of the accounting period

Question

Quizplus · Accepted Answer

Wages owing but not paid at the end of the accounting period are considered an expense because they represent the cost of labor that has been used up during the period, even though the cash payment has not yet been made. This aligns with the accrual basis of accounting, where expenses are recognized when incurred, not necessarily when paid.

Which of the Following Is an Expense