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- Name – Quiz 34 – Outstanding expenses – (Answers)
- Topic – Outstanding expenses
- Answers with Explanation
Q1. Outstanding rent is treated as _____.
Ans. Outstanding Expense is an expense that is due but has not been paid. It is a short-term liability for the business.
Q2. Outstanding expenses are also called _____.
Ans. The other name for outstanding expenses is “accrued expenses”.
Q3. Outstanding expenses are shown under the head _____.
Ans. Outstanding expenses appear within the current liability section of the balance sheet.
Q4. Expenses incurred but not yet paid are known as _____ expenses.
Ans. Outstanding expenses are those expenses that are due in the current accounting period but not paid.
Q5. Outstanding expenses are paid _____.
Ans. Outstanding expenses are those expenses which are due but not paid, however, the benefits are usually received.
Q6. Outstanding expenses are shown in _____.
Ans. Outstanding expenses are shown on the liability side of a balance sheet.
Q7. The payment related to outstanding expense is made _____.
Ans. The payment for an outstanding expense is made in the future accounting period.
Q8. Outstanding expenses are treated as _____.
Ans. Outstanding expenses are treated as a liability for the business.
Q9. Outstanding expenses are also called _____ expenses.
Ans. Such expenses are also known as accrued expenses. They are synonymously used, however, there is a thin line between both of them, as accrued expenses are incurred but not due whereas outstanding expenses are both incurred & due.
Q10. Outstanding expense is a _____ account.
Ans. Outstanding expense is a personal account and is shown on the liability side of a balance sheet.
Q11. ‘Outstanding Expense A/C’ is _____ to record the journal entry for outstanding expenses.
Ans. Debit – Expense A/C & Credit – Outstanding Expense A/C, for e.g. Debit – Rent A/C & Credit – Outstanding Rent A/C
Q12. _____ is an example of outstanding expense.
Ans. Outstanding wages are an operating expense for the business which is due therefore it is an outstanding expense. A capital expense such as payment for a fixed asset (furniture, land, building, etc.) may not be treated as an O/S expense. (assuming it is not due within 12 months)
Q13. Credit Card Due = 10,000, Paid on Credit Card = 7,000, Outstanding Expense = _____.
Ans. Outstanding expenses = 10,000 -7,000 = 3,000 Rs.
Q14. Outstanding expenses are _____.
Ans. Outstanding expenses are current liabilities.