An adjustment is made for an expense incurred prior to its payment.The adjustment is called a(n):

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An expense that has been incurred but not yet paid is an accrued expense. It requires an adjusting entry to recognize the expense in the accounting period in which it was incurred. Prepaid expenses refer to payments made in advance of incurring an expense, and unearned expenses refer to payments received for goods or services not yet provided. Accrued assets are not a commonly used term in accounting.

An Adjustment Is Made for an Expense Incurred Prior to Its