The correct answer is A. Outstanding expenses.
Outstanding expenses are expenses that have been incurred but not yet paid. They are usually recorded as a liability on the balance sheet. Examples of outstanding expenses include wages payable, salaries payable, and accounts payable.
Prepaid expenses are expenses that have been paid in advance but have not yet been incurred. They are usually recorded as an asset on the balance sheet. Examples of prepaid expenses include prepaid rent, prepaid insurance, and prepaid advertising.
Proposed expenses are expenses that have been budgeted for but have not yet been incurred. They are not recorded on the balance sheet.
Working capital is a measure of a company’s liquidity. It is calculated by subtracting current liabilities from current assets. A company with a high working capital ratio is considered to be financially healthy.
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