passwella.
Menu

WAEC Financial Accounting 2010 Question 37

Question 37

Accruals and Prepayments

An expense is termed an 'accrual' because it

  1. A.is yet to be paid for
  2. B.is a profit and loss account item
  3. C.must appear in the balance sheet
  4. D.is a trading account item
Show the answer and explanation

Answer: A (is yet to be paid for)

Explanation

An accrued expense has been used but not yet paid for.