Which of the following is considered to be an accrued expense?

a. a computer technician has just signed an agreement with you regarding pricing for future work
b. a computer technician has installed the latest software updates, but you have not received an invoice or made payment
c. a computer technician has installed the latest software updates and was paid on the same day
d. a computer technician has been paid in advance to install software updates as they become available

B. a computer technician has installed the latest software updates, but you have not received an invoice or made payment

Explanation:

An accrued expense arises when a service has been rendered to an individual or organisation but to which the recipient of the service has not made payment for the service. The expense will be recognized in the period in which the service is rendered. In this scenario, the technician has rendered a service by installing software updates but the organisation has not made payment for the service provided. This represents an accrued expense.

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