Making liability provision for the expenses relating to current year but actual payment to be incurred in the next financial year is outstanding expenses. Example of this case may be salary arrears.
Making payment during the current financial year but actual expenditure is related to next financial year is prepaid expense. This type of expenditures arises in the case of advance payment of taxes on certain categories.
ordinary business expenses
estimated expenses are expenses that are not actual or real. it may be more than or less than the ctual expenses
A nominal real account represents incomes, gains, expenses, and losses. A personal account represents a person's and organization's expenses.
"Net income" simply means income minus expenses.
If you have money to spend after paying taxes and all expenses, you have spending power according to the amount of money you have left over. A tourist with spending power has money to spend after all travel expenses are paid or accounted for.
Debit outstanding expensesCredit expenses payable
Outstanding expenses are those which are yet to be paid in current financial year. Journal entry would be Expenses a/c dr to Outstanding expenses a/c Outstanding expenses should be crecdited because its a liability for the company.
what is outsand expenses
[Debit] Outstanding expenses [Credit] Cash / bank
Today, I recorded outstanding expenses in our journal to reflect costs that have been incurred but not yet paid for. This helps us accurately track our financial obligations and ensure they are accounted for in our records. By noting these outstanding expenses, we maintain transparency in our financial reporting and can better manage our cash flow.
outstanding expences is an current liability
Outstanding expnese is that expense which is already incurred but amount is not paid while unexpired expenses are those expenses for which payment is made in advance but actually expenses are not yet incurred.
The answer is (C ) Outstanding expenses, as these are liabities of business and not an asset.
prepaid expenses are paid in advance and they are called current assets.The outstanding expense is the unpaid money,still owed.
madhar
expenses that you still owe (have not yet been paid).
Outstanding expenses are put on the credit side in a loss and profit account. Outstanding expenses refer toÊthe amounts of money that are due for things like rent that are not yet paid.