Question

Class 11-Accountancy- Half... 36. Expenses paid but relating to next financial year or years are known as (1 Point Unexpired expenses O Expenses O Outstanding expenses O Both A and B
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Answer 1

Answer:

Expense paid but relating to next financial year or years, is known as:

Answer 2

Expenses paid but relating to next financial year or years are known as Prepaid Expenses.

Explanation:

• A Prepaid expense occurs when a company makes advance payments for goods or services that will be received in the future - next financial year.
• It is an asset for the business as the amount is paid and services are yet to be received. Therefore, it is debited in the journal entries.
• Some examples of Prepaid expenses are: Salaries paid in Advance, Rent Paid in Advance etc.

Hence, Expenses paid but relating to next financial year or years are known as Prepaid Expenses.