Which of the following is considered to be an accrued expense?
A) A computer technician 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. Option D fits this definition as the software updates have been installed but no payment has been made yet. Options A and B are not accrued expenses as payment has already been made in both cases. Option C is not specific enough to determine if it is an accrued expense or not.

Which of the Following Is Considered to Be an Accrued