Accrued expenses involve the payment of cash before recording an expense and a liability. a. Trueb. False

b) False

Explanation:

Accrued expense is expense that has already been incurred by the Company, however the Company has not received the invoice / bill from vendor yet. For example, upon completion of any reporting period, the Company records several utilities' expenses based on past experience, however the bills / invoices are received after few days.

Prepaid expense are the expenses which involve the payment of cash before the expense actually occurs. For example premises rents are paid in advance for three months, so prepaid expense is debited with corresponding credit to cash / bank.