Which is not an expense account indeed ? a)Repairs expense b)Rent expense c)Accrued expenses d)Advertising expense e)Interest expense

Which is not an expense account indeed ?

a)Repairs expense

b)Rent expense

c)Accrued expenses

d)Advertising expense

e)Interest expense

Answer: c)Accrued expenses

Accrued expenses like discounts on products or services, incentives such as free extra items given to customers must not be accounted as an expense account. It is a liability account that is responsible for acknowledging the amount of money that has been incurred by the entity, but the bills have not been settled or recorded in the expense account.

The other options are indeed expense accounts:

a) Repairs expense: It registers costs of the repairing and operating assets or property.

b) Rent expense: Molding the rental payments for rented assets (e.g. office or machine).

d) Advertising expense: It records the expenses spent on adviser features such as display adverts and online promotions.

e) Interest expense: The rate of interest expense generated on loans, bonds, and other loan securities is registered here.

Income brought revenues and expenses are accrued expenses account, an contra account which catch up on timing discrepancies between when an expense is incurred and when it is actually paid or recorded in the expense account