Cengage accounting chapter 3 homework answers
Question:
How do you keep track of costs that have already been paid?
Answer:
Costs that have already been paid but haven’t been written down in the books are called “accrued expenses.” Costs that have been spent but for which there is no bill or other proof are called “accrued expenses.” They are called “current liabilities” on a company’s balance sheet, which means they must be paid within the next 12 months. Accrued liabilities are a company’s obligation to pay for goods and services that have been delivered but for which invoices have not yet been received.
