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WAEC Financial Accounting 1995 Question 43

Question 43

Accruals and Prepayments

Expenses incurred but not yet paid is

  1. A.contigent liability
  2. B.current liability
  3. C.current asset
  4. D.fixed asset
  5. E.capital expenditure.
Show the answer and explanation

Answer: B (current liability)

Explanation

An accrued expense is owed, so it is a current liability.