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What are Outstanding Expenses?

15. What are Outstanding Expenses?

1. Expenses which are not paid off in the current balance sheet.
2. The necessary purchases that keep a business going from day-to-day.
3. Type of expense that is due but has not been paid.
4. None of the above.

Answer: C) Type of expense that is due but has not been paid

Explanation:

An Outstanding Expense is a type of expense that is due but has not been paid. This expense becomes outstanding to the company when, this has taken the benefit, but the related payment has not been made simultaneously. For Example: Rent due but not yet paid.