Multiple choice

Directions: Choose the correct option for the given question.

Outstanding payments are recorded in the books of accounts by way of passing

  1. opening entry

  2. closing entry

  3. adjustment entry

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Outstanding expenses are liabilities that need to be recognized at the end of the accounting period, which is done through an adjustment entry.

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