Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Expenses

Financial Accounting

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Expenses

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Prior to the adjusting process, accrued expenses have:

been incurred but not yet recorded or paid

been paid and recorded as assets

been paid and recorded as liabilities

been recorded as revenues

Previous problemNext problem

Verified step by step guidance

Understand the concept of accrued expenses: Accrued expenses are costs that have been incurred during a specific accounting period but have not yet been recorded in the books or paid. These are liabilities because the company owes money for these expenses.

Analyze the options provided: The correct answer should align with the definition of accrued expenses. Review each option carefully to determine which one matches the concept.

Option 1: 'Been incurred but not yet recorded or paid' - This matches the definition of accrued expenses, as they are costs that have been incurred but not yet recorded or paid.

Option 2: 'Been paid and recorded as assets' - This is incorrect because accrued expenses are liabilities, not assets, and they have not been paid yet.

Option 3: 'Been paid and recorded as liabilities' and Option 4: 'Been recorded as revenues' - Both are incorrect because accrued expenses are unpaid liabilities, not revenues or paid liabilities.