Define the following term with an example:
outstanding expense, prepaid expense, gain.
Answers
Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made. Such an item is to be treated as a payable for the business. Examples – Outstanding salary, outstanding rent, outstanding subscription, outstanding wages, etc.
Prepaid expenses are future expenses that have been paid in advance. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired. ... As the amount expires, the current asset is reduced and the amount of the reduction is reported as an expense on the income statement.
In financial accounting, a gain is the increase in net profit resulting from something other than the day to day earnings from recurrent operations, and are not associated with investments or withdrawals
Answer:
osls expense are those expenses which have been incurred accountig period and are due to be paid ,however the payment is not made.such an item is to be treated as pay ble for the business. ex are outstanding rent outstanding salary and outstanding subscription,outstanding wages.
prepaid expense are future expenses that have been paid in advanse. ex prepaid rent