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WAEC Financial Accounting 2009 Question 31

Question 31

Accruals and Prepayments

A service which a firm has enjoyed, but which has not yet been paid for is

  1. A.accrued expense
  2. B.preliminary expense
  3. C.prepaid expense
  4. D.overhead expense
Show the answer and explanation

Answer: A (accrued expense)

Explanation

An expense used but still unpaid at the year end is an accrued expense.