Question

The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:

A. asset.
B. accrued.
C. prepayment.
D. contra asset.

Answer 1

The term for expenses or revenues that are recognized but not yet paid or received is 'accrued,' which are recorded as liabilities or assets in the accounting period they are incurred or earned.

Step-by-step explanation:

The general term that is used to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is B. accrued. Accrued expenses and revenues are amounts that are recognized in the accounting period in which they are incurred or earned, even though they may not have been paid or received in cash. This concept is a fundamental aspect of the accrual basis of accounting. In a balance sheet, accrued expenses are recorded as liabilities and represent costs for goods or services provided to a business or individual that have not yet been paid. Conversely, accrued revenues are recorded as assets and represent money that is owed to a business or individual for goods or services that have been delivered but not yet paid for by the customer.

Answer 2

Answer: The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:

B. accrued.

Explanation: It is the accounting principle by which recognition of losses and gains is given based on time, regardless of having paid or collected.