Quiz 34 – Outstanding expenses – (Answers)

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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.