A. accrued expenses
B. lighting and heating
C. salaries and wages
D. general expenses
Correct Answer:
Option A – accrued expenses
Explanation
Accrued expense is expense which has been incurred but not yet paid. Expense must be recorded in the accounting period in which it is incurred. Therefore, accrued expense must be recognized in the accounting period in which it occurs rather than in the following period in which it will be paid.
It can be found on the liabilities part of a balance sheet of a limited liability company
