The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is
A) prepaid
B) deferred
C) accrued
D) matched

Question

Quizplus · Accepted Answer

An expense that has not been paid and has not yet been recognized in the accounts by a routine entry is called an accrued expense. It is an expense that the company has incurred but has not yet paid for, and therefore, it needs to be recognized in the accounts as a liability. Option A (prepaid) refers to an expense that has been paid but not yet recognized, while option B (deferred) refers to revenue that has been received but not yet earned. Option D (matched) refers to a concept of matching expenses to revenues in a specific period.

The Term Used to Describe an Expense That Has Not