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- Outstanding Expenses When expenses of an accounting period remain unpaid at the end of accounting period, they are termed as outstanding expenses. For example, if Salaries are paid for 11 months only, then the salaries for the 12th month will be called Outstanding Salaries.
- Prepaid Expenses Those expenses which have been paid during the current accounting period but the benefit of which will accrue in the subsequent accounting period or periods are known as prepaid expenses. For example, rent paid in advance for 3 months.
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Satyam Kumar 6 years, 5 months ago
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