Which of the following is considered to be an accrued expense?
A) a computer technician has installed the latest software updates and was paid on the same day
B) a computer technician has been paid in advance to install software updates as they become available
C) a computer technician has just signed an agreement with you regarding pricing for future work
D) a computer technician has installed the latest software updates, but you have not received an invoice or made payment

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but not yet paid for. In option D, the computer technician has already performed the service (installed software updates), but the invoice has not yet been received or paid. This means that the expense has been accrued but not yet paid for. Options A and B are not accrued expenses because the technician has already been paid. Option C is not an expense at all but rather an agreement for future work.

Which of the Following Is Considered to Be an Accrued