NCERT · Class 11 · Accountancy · Financial Statements - IOutstanding expenses are:
Step-by-Step Solution
Outstanding expenses are expenses that have been incurred during the accounting period but remain unpaid at the end of the period. They are added to the respective expense and shown as a liability.
Detailed Options Breakdown
Option : Paid in advance
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 1: Incurred but not yet paid (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Incomes received in advance
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 3: Not related to current year
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - I. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - I Revision Notes.