Question

What is the term for an expense that is paid in cash before it is used....

What is the term for an expense that is paid in cash before it is used.

a

Accrued expense

b

Cash expense

c

Prepaid expense

d

Estimated expense
Business   Accounting   
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Answer #1
Answer: Explanation:
Accrued expense are the expenses which are incurred and for which payment is outstanding.
Cash expense are those expense which are incurred on payment of cash.
Prepaid expense are those expense for which payment is made in advance but expense is not incurred yet or would be incurred in future.
Estimated expense is the estimate of expense to be incurred.
Therefore, the term for an expense that is paid in cash before it is used is prepaid expense (i.e. option c)
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