An item in the balance sheet of a limited liability company is

FINANCIAL
JAMB 2016

An item in the balance sheet of a limited liability company is

  • A. accrued expenses
  • B. lighting and heating
  • C. salaries and wages
  • D. general expenses

Correct Answer: A. accrued expenses

Explanation

Accrued expense is expense which has been incurred but not yet paid. Expense must be recorded in the accounting period in which it is incurred. Therefore, accrued expense must be recognized in the accounting period in which it occurs rather than in the following period in which it will be paid. It can be found on the liabilities part of a balance sheet of a limited liability company



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