Concept:An expense incurred but not yet paid is an outstanding expense, which creates a liability for the business.Explanation:The expense has already been incurred, so the business has the obligation to pay it in the near future.Since it is due within a short period, it is treated as a current liability.It is not a long-term liability because the payment period is short, not a current asset because it is an obligation, and not capital expenditure because it is a revenue expense.Answer:B. current liability.