Expenses That Have Been Incurred (Such as Wages) but Have

question 18

Multiple Choice

Expenses that have been incurred (such as wages) but have yet to be paid, are reported on the balance sheet as ______.

• A) accounts payable
• B) accounts receivable
• C) accruals
• D) notes payable

---

Definitions:

Residual Value

Residual value is the estimated amount that an asset will be worth at the end of its useful life, after depreciation has been taken into account.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Operating Hours

The hours during which a business is open to customers, typically specified for workplaces, retail stores, or service providers.

Machine Purchase

The acquisition of industrial or office machinery, usually considered a long-term investment in assets.