The term 'Outstanding Expense' is treated as: MCQ with Answer and Explanation

The term 'Outstanding Expense' is treated as:
A. A gain
B. An income
C. An asset
D. A liability
Answer: Option D
Solution (By JKSSB Mock Tests)
Outstanding expenses are expenses incurred but not yet paid, making them a current liability for the business.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is not a part of the Balance Sheet?
A. Fixed Assets
B. Current Liabilities
C. Gross Profit
D. Share Capital

Correct Answer: Option C


Explanation:
Gross profit is shown in Trading/Profit & Loss Account, not in the Balance Sheet.

Question #2
A 'Voucher' that records a transaction involving both cash and bank is called:
A. Contra voucher
B. Payment voucher
C. Receipt voucher
D. Journal voucher

Correct Answer: Option A


Explanation:
Contra vouchers record transactions like cash deposited into bank or withdrawn from bank.

Question #3
S1: The Purchases Return Book records returns of goods purchased on credit. S2: The Purchases Return Book is also called the Returns Outwards Book. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S1 only
C. Both S1 and S2
D. S2 only

Correct Answer: Option C


Explanation:
The Purchases Return Book records goods returned to suppliers that were originally purchased on credit. It is also known as the Returns Outwards Book because goods are going out of the business. Both statements are correct.