A characteristic of an accrued expense is the expense is recognized before the payment of cash. Hence, Option D is correct.
<h3>What is an accrued expense?</h3>
In other words, when any kind of expense is incurred when there are no invoices or other kinds of documents, they are considered as accrued expenses.
They can be classified as current liabilities, in which case they have to be paid within a time period of a minimum of 12 months. It also appears or can be visible on a company's balance sheet.
Therefore, among all the given characteristics, the one which is the characteristic of an accrued expense option D.
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The complete question is attached in text form:
Which of the following is a characteristic of an accrued expense? multiple choice:
cash is paid, but an expense is never recorded.
an expense is recognized, but the cash payment is never paid.
cash payment occurs before expense recognition.
the expense is recognized before the payment of cash.
