Question

There are expenses on pre-launch advertisement worth 50,000. The accountant decides to write off 1/5th of expenses every year from the book. Name the type of asset under which such expenditure to be shown & how much amount is to be shown in the balance sheet in the first year.

Answer 1

Answer:

An Outstanding Expense is an expense which is due but has not been paid. An expense becomes outstanding when the company has taken the benefit, but the related payment has not been made. Outstanding expenses appear within the Current Liability section of the Balance Sheet.