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 their invoice for payment.

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but has not yet been paid. Choice A is a paid expense, choice B is a prepaid expense, and choice C refers to future pricing, which is not an expense yet. Choice D, on the other hand, refers to a completed service for which an invoice has not yet been received and is therefore an accrued expense.

Which of the Following Is Considered to Be an Accrued