An expense that has been incurred but not yet paid is called a(n):
A)accrued revenue.
B)prepaid expense.
C)unearned revenue.
D)accrued expense.

Question

Quizplus · Accepted Answer

An expense that has been incurred but not yet paid is called an accrued expense. Accrued expense refers to the expense that is recognized in the books of accounts before it is paid. This type of expense is recorded when the cost is incurred but not yet billed or paid, and is shown under current liabilities in the balance sheet.

An Expense That Has Been Incurred but Not Yet Paid