An Expense That Has Been Incurred but Not Yet Paid

question 82

Multiple Choice

An expense that has been incurred but not yet paid is called a(n) :

• A)accrued revenue.
• B)prepaid expense.
• C)unearned revenue.
• D)accrued expense.

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Definitions:

Sales Returns and Allowances

A reduction in sales revenue due to returns or allowances for unsatisfactory goods, reported as a contra-revenue account.

Debit Memorandum

A document issued to signal a decrease in accounts receivable, often due to a return or an adjustment.

Accounts Payable

Liabilities or amounts a company owes to creditors or suppliers for goods or services that have been received but not yet paid for.

Sales Discount

A reduction from the listed or invoice price offered by a seller to a buyer, often to prompt early payment or reward bulk purchases.