QQuestionAccounting
QuestionAccounting
Which is not an expense account?
A. Rent expense
B. Repairs expense
C. Advertising expense
D. Interest expense
E. Accrued expenses
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Answer
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Step 1:I'll solve this accounting problem step by step:
Step 2:: Understand the Definition of an Expense Account
An expense account represents a cost incurred by a business during its normal operations that reduces net income. Typical expense accounts include rent, repairs, advertising, and interest payments.
Step 3:: Analyze Each Option
Accrued expenses $$\rightarrow$$ This is NOT a typical expense account
A. B. C. D. E.
Step 4:: Explain Accrued Expenses
Accrued expenses are liabilities representing expenses that have been incurred but not yet paid. They are a balance sheet account, not an income statement expense account.
Step 5:: Identify the Correct Answer
The option that is NOT an expense account is: E. Accrued expenses
Final Answer
Accrued expenses is not an expense account, but rather a liability account representing unpaid expenses.
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