Which of the Following Is NOT Considered an Accrued Expense

question 175

Multiple Choice

Which of the following is NOT considered an accrued expense account?

• A) Depreciation Expense
• B) Salaries Expense
• C) Rent Expense
• D) Interest Expense

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Definitions:

Cash Discounts

A reduction in the amount owed by a customer if payment is made within a specified period.

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis rather than after each transaction.

Net Method

An accounting method for recording purchases where the purchase price includes a cash discount for early payment, emphasizing the net price as the expected payment amount.

Credit Terms

The conditions under which credit will be extended to a borrower, including the repayment schedule, interest rate, and any other terms and conditions.