Question

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 just signed an agreement with you regarding pricing for future work c.a computer technician has installed the latest software updates, but you have not received an invoice or made payment d.a computer technician has been paid in advance to install software updates as they become available

Answer 1

Answer:

The answer would be, c) A computer technician has installed the latest software updates, but you have not received an invoice or made payment  

Explanation:

An accrued expense is a cost that has already been incurred but has not yet been paid. It should be recorded in the accounting period in which it got incurred. Thus, an accrued expense should be should be documented in immediately it gets incurred as opposed to recording it the time it gets paid.