Accrued expenses

Question 1

Accrued expenses

Answer 1

A current liability that arises when an expense has been used/consumed but has not yet been paid for.
(owing)

Question 2

Examples of an accrued expense

Answer 2

• Wages owing for employees for work that has already been done
• Electricity

Question 3

Example of electricity in the general journal

Answer 3

Electricity = debit

Accrued electricity = credit

Question 4

Example of wages in the general journal

Answer 4

Wages = debit

Accrued wages = credit