If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account,which of the following describes the effect of the debit portion of the entry?
A) increases the balance of a contra asset account
B) increases the balance of an asset account
C) decreases the balance of an stockholders' equity account
D) increases the balance of an expense account

Question

Quizplus · Accepted Answer

The debit portion of an adjusting entry that increases a liability typically increases an expense account, reflecting the recognition of an expense incurred but not yet paid or recorded. This aligns with the matching principle, ensuring expenses are recorded in the period they are incurred.

If the Effect of the Credit Portion of an Adjusting