The adjusting entry to record an accrued expense is:
A) Increase an expense; increase a liability.
B) Increase an asset; increase revenue.
C) Decrease a liability; increase revenue.
D) Increase an expense; decrease an asset.
E) Increase an expense; decrease a liability.

Question

Quizplus · Accepted Answer

Accrued expenses are expenses that have been incurred but not yet paid, so the adjusting entry increases an expense account to reflect the incurred expense and increases a liability account to show the obligation to pay in the future.

The Adjusting Entry to Record an Accrued Expense Is