What are Outstanding Expenses? A. Expenses which are not paid off in the current balance sheet. B. The necessary purchases that keep a business going from day-to-day. C. Type of expense that isdue but has not been paid. D. None of the above.

If an entity follows an accrual system of accounting, then at the end of the year it records the…

Answered: What are Outstanding Expenses? A.…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 6DQ: When an owner withdraws cash or goods from the business, why is this considered an increase to the...

See similar textbooks

Similar questions

When an owner withdraws cash or goods from the business, why is this considered an increase to the Drawing account and not an increase to the Wages Expense account?
What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
The Business is in loss, when ________" a) Revenue exceeds Expenditure b) Assets exceeds Liabilitiesc) Expenses exceed Salesd) Expenses exceed Other IncomePurchase of Stationary will be debited to _______a) General Expense b) Stationary Accountc) Purchases Accountd) None of the Above
When, at the end of an accounting period, cash has not been paid with respect to an expense that has been incurred, the business should then record: B . a prepaid expense, an asset
A company uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance? a. Assets increase and Stockholders' equity decrease b. Assets and Stockholders' equity decrease c. Stockholders' equity and liabilities decrease d. Assets and liabilities decrease
What are Accrued expenses? Always recorded in cash-basis accounting Expenses from an earlier accounting period that remain unpaid in the current period Generally not due to be paid until a future period Unnecessary to record-the financial statements will be correct whether they are recorded or not Another name for accounts receivable
What account will not be found in the financial statements of a company using accrual basis of accounting? *A. accrued expenseB. prepaid expenseC. depreciation expensesD. bad debts expenseE. answer not given
When a business suffers a net loss, the journal entry to close the income summary account would be to debit income summary and credit capital. True or false.
If a company doesn’t make adjusting entry for accrued expenses: Liabilities will be overstated; expenses and net income will be understated. Liabilities, expenses and net income will be overstated. Liabilities; expenses and net income will be understated. Liabilities and expenses will be understated, net income will be overstated.
When, at the end of an accounting period, cash has not been paid with respect to an expense that has been incurred, the business should then record: A . an accrued expense, an asset
A company uses the direct write-off method to account for bad debts. What is the impact on the accounting equation of the entry to record the write-off of a customer’s account balance? Assets and liabilities decrease. Assets and shareholders’ equity decrease. Assets increase and shareholders’ equity decreases. Shareholders’ equity and liabilities decrease.

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

What are Outstanding Expenses? A. Expenses which are not paid off in the current balance sheet. B . The necessary purchases that keep a business going from day-to-day. C. Type of expense that is due but has not been paid. D. None of the above.