Question

State the meaning of Outstanding expenses

Answer 1

Outstanding Expenses: These refer to those expenses which belong to and are incurred in the current accounting period but are left unpaid.

In other words, we can say that the services in exchange of these payments have been realised but the payments are not made.

For example, if ₹ 1000 wages are outstanding, then this means that labour worth ₹ 1,000 has been used but has not been paid for till the end of the year.