what-happens-to-accrued-expenses-when-they-are-paid-in-cash-in-the-next-period

Question

What happens to accrued expenses when they are paid in cash in the next period?

Accepted Answer

They are removed from liabilities and cash decreases.

Answer

They are converted to revenues and increase the company's net income.

Answer

They remain as liabilities on the balance sheet and cash decreases.

Answer

They are added to assets on the balance sheet and cash increases.