📘 Outstanding Expenses – 100 MCQs

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1–20: Basic Concepts

1. Outstanding expenses are:
   A. Paid expenses
   B. Expenses due but not paid
   C. Advance income
   D. Capital expenses
   Answer: B
2. Outstanding expenses are also called:
   A. Prepaid expenses
   B. Accrued expenses
   C. Deferred income
   D. Capital loss
   Answer: B
3. Outstanding expenses are:
   A. Asset
   B. Liability
   C. Income
   D. Capital
   Answer: B
4. Outstanding expenses follow:
   A. Cash basis
   B. Accrual basis
   C. Market basis
   D. Cost basis
   Answer: B
5. Outstanding expenses relate to:
   A. Future period
   B. Current period
   C. Past period
   D. None
   Answer: B
6. Outstanding expenses are shown in:
   A. Trading A/c
   B. P&L A/c
   C. Balance Sheet
   D. Both B & C
   Answer: D
7. Outstanding expenses increase:
   A. Profit
   B. Liability
   C. Asset
   D. Capital
   Answer: B
8. Outstanding expenses decrease:
   A. Profit
   B. Asset
   C. Liability
   D. Capital
   Answer: A
9. Example of outstanding expense:
   A. Rent unpaid
   B. Advance rent
   C. Salary received
   D. Income received
   Answer: A
10. Outstanding expenses are recorded at:
    A. End of period
    B. Beginning
    C. Middle
    D. Anytime
    Answer: A
11. Outstanding expenses are:
    A. Revenue expenditure
    B. Capital expenditure
    C. Asset
    D. Income
    Answer: A
12. Outstanding expenses arise due to:
    A. Delay in payment
    B. Advance payment
    C. Profit
    D. Loss
    Answer: A
13. Outstanding expense is:
    A. Paid
    B. Unpaid
    C. Received
    D. None
    Answer: B
14. Outstanding expenses ensure:
    A. True profit
    B. Higher profit
    C. Lower liability
    D. None
    Answer: A
15. Outstanding expenses are:
    A. Optional
    B. Mandatory adjustment
    C. Illegal
    D. None
    Answer: B
16. Outstanding expenses are added to:
    A. Income
    B. Expense
    C. Asset
    D. Capital
    Answer: B
17. Outstanding expenses are deducted from:
    A. Liability
    B. Expense
    C. Profit
    D. Capital
    Answer: C
18. Outstanding expenses are current:
    A. Asset
    B. Liability
    C. Income
    D. Capital
    Answer: B
19. Outstanding expenses relate to:
    A. Expense incurred
    B. Expense not incurred
    C. Income
    D. Capital
    Answer: A
20. Outstanding expenses affect:
    A. Balance Sheet
    B. Profit
    C. Both
    D. None
    Answer: C

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21–50: Accounting Treatment

21. Entry for outstanding expenses:
    A. Debit Expense A/c
    B. Credit Outstanding A/c
    C. Both A & B
    D. None
    Answer: C
22. Expense A/c is debited because:
    A. Expense increases
    B. Expense decreases
    C. Asset increases
    D. Liability decreases
    Answer: A
23. Outstanding expenses A/c is credited because:
    A. Liability increases
    B. Asset increases
    C. Expense decreases
    D. Income increases
    Answer: A
24. Outstanding expenses appear in Balance Sheet on:
    A. Asset side
    B. Liability side
    C. Income side
    D. Expense side
    Answer: B
25. Outstanding expenses appear in P&L as:
    A. Deduction
    B. Addition
    C. Income
    D. Asset
    Answer: B
26. Outstanding salary means:
    A. Salary paid
    B. Salary unpaid
    C. Salary advance
    D. Salary income
    Answer: B
27. Outstanding rent is:
    A. Paid
    B. Unpaid
    C. Received
    D. None
    Answer: B
28. Outstanding expenses increase:
    A. Expense
    B. Income
    C. Asset
    D. Capital
    Answer: A
29. Outstanding expenses are recorded to:
    A. Overstate profit
    B. Understate profit
    C. Show correct profit
    D. Ignore
    Answer: C
30. Outstanding expenses follow:
    A. Matching principle
    B. Realisation
    C. Dual aspect
    D. None
    Answer: A
31. Outstanding expenses are:
    A. Adjustment entry
    B. Routine entry
    C. Cash entry
    D. Capital entry
    Answer: A
32. Outstanding expenses are included in:
    A. Trial balance
    B. Adjustment
    C. Both
    D. None
    Answer: B
33. Outstanding expenses create:
    A. Asset
    B. Liability
    C. Income
    D. Capital
    Answer: B
34. Outstanding expenses are unpaid:
    A. Income
    B. Expense
    C. Asset
    D. Capital
    Answer: B
35. Outstanding expenses are carried forward as:
    A. Asset
    B. Liability
    C. Expense
    D. Income
    Answer: B
36. Outstanding expenses are reversed next year:
    A. Yes
    B. No
    C. Sometimes
    D. Never
    Answer: A
37. Outstanding expenses are adjusted in:
    A. Final accounts
    B. Trial balance
    C. Ledger
    D. Cash book
    Answer: A
38. Outstanding expenses represent:
    A. Obligation
    B. Income
    C. Asset
    D. Profit
    Answer: A
39. Outstanding expenses are unpaid obligations of:
    A. Business
    B. Owner
    C. Bank
    D. None
    Answer: A
40. Outstanding expenses are liabilities because:
    A. Payment due
    B. Payment received
    C. Income earned
    D. None
    Answer: A

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51–75: Practical & Conceptual

51. If salary ₹5000 outstanding, expense becomes:
    A. Less
    B. More
    C. Same
    D. Zero
    Answer: B
52. Outstanding expenses reduce:
    A. Profit
    B. Asset
    C. Income
    D. Liability
    Answer: A
53. Outstanding expenses increase:
    A. Liability
    B. Asset
    C. Profit
    D. Income
    Answer: A
54. Outstanding expenses are:
    A. Current liability
    B. Fixed asset
    C. Capital
    D. Income
    Answer: A
55. Outstanding expenses are:
    A. Paid in advance
    B. Due but unpaid
    C. Income
    D. Asset
    Answer: B
56. Outstanding electricity bill is:
    A. Expense
    B. Liability
    C. Both
    D. None
    Answer: C
57. Outstanding expenses ensure:
    A. Matching
    B. Profit
    C. Cash flow
    D. None
    Answer: A
58. Outstanding expenses arise when:
    A. Expense incurred but unpaid
    B. Paid in advance
    C. Income received
    D. None
    Answer: A
59. Outstanding expenses are shown as:
    A. Add to expense
    B. Deduct from expense
    C. Income
    D. Asset
    Answer: A
60. Outstanding expenses are recorded:
    A. Before closing
    B. After closing
    C. Anytime
    D. Never
    Answer: A
61. Outstanding expenses are liabilities because:
    A. Future payment
    B. Past payment
    C. Income
    D. None
    Answer: A
62. Outstanding expenses are short-term:
    A. Yes
    B. No
    C. Long-term
    D. None
    Answer: A
63. Outstanding expenses are:
    A. Accrued
    B. Deferred
    C. Capital
    D. None
    Answer: A
64. Outstanding expenses relate to:
    A. Current year
    B. Next year
    C. Past year
    D. None
    Answer: A
65. Outstanding expenses should be:
    A. Ignored
    B. Recorded
    C. Deleted
    D. None
    Answer: B

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76–100: Railway Context & Advanced

76. In Railways, outstanding expenses include:
    A. Salary
    B. Electricity
    C. Maintenance
    D. All
    Answer: D
77. Outstanding wages in workshop are:
    A. Asset
    B. Liability
    C. Income
    D. Capital
    Answer: B
78. Outstanding expenses in Railways affect:
    A. Budget
    B. Accounts
    C. Both
    D. None
    Answer: C
79. Outstanding expenses are important for:
    A. True accounts
    B. False accounts
    C. Profit only
    D. None
    Answer: A
80. Outstanding expenses ensure:
    A. Accuracy
    B. Error
    C. Profit increase
    D. None
    Answer: A
81. Outstanding expenses are shown under:
    A. Current liabilities
    B. Fixed assets
    C. Capital
    D. Income
    Answer: A
82. Outstanding expenses are unpaid:
    A. Revenue expenses
    B. Capital expenses
    C. Income
    D. Asset
    Answer: A
83. Outstanding expenses in Railways are recorded as per:
    A. Accrual system
    B. Cash system
    C. Hybrid
    D. None
    Answer: A
84. Outstanding expenses increase:
    A. Liabilities
    B. Assets
    C. Income
    D. Capital
    Answer: A
85. Outstanding expenses decrease:
    A. Profit
    B. Liability
    C. Asset
    D. Income
    Answer: A
86. Outstanding expenses are essential for:
    A. Financial statements
    B. Cash book
    C. Ledger only
    D. None
    Answer: A
87. Outstanding expenses are obligations to:
    A. Creditors
    B. Employees
    C. Suppliers
    D. All
    Answer: D
88. Outstanding expenses are shown at:
    A. Year end
    B. Month end
    C. Daily
    D. None
    Answer: A
89. Outstanding expenses are:
    A. Real
    B. Nominal
    C. Personal
    D. None
    Answer: B
90. Outstanding expenses follow:
    A. Prudence
    B. Matching
    C. Both
    D. None
    Answer: C
91. Outstanding expenses must be disclosed:
    A. Yes
    B. No
    C. Optional
    D. None
    Answer: A
92. Outstanding expenses help in:
    A. True profit
    B. False profit
    C. Loss only
    D. None
    Answer: A
93. Outstanding expenses are:
    A. Adjustments
    B. Errors
    C. Income
    D. None
    Answer: A
94. Outstanding expenses are unpaid but:
    A. Incurred
    B. Not incurred
    C. Received
    D. None
    Answer: A
95. Outstanding expenses are:
    A. Expense of current year
    B. Next year
    C. Past year
    D. None
    Answer: A
96. Outstanding expenses are included in:
    A. Final accounts
    B. Cash book
    C. Ledger
    D. None
    Answer: A
97. Outstanding expenses create:
    A. Liability
    B. Asset
    C. Income
    D. Capital
    Answer: A
98. Outstanding expenses are:
    A. Current liability
    B. Fixed liability
    C. Asset
    D. Income
    Answer: A
99. Outstanding expenses are unpaid but recorded for:
    A. Accuracy
    B. Profit
    C. Cash
    D. None
    Answer: A
100. Outstanding expenses are necessary for:
     A. True financial position
     B. False
     C. Profit only
     D. None
     Answer: A

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