Which of the following adjusting entries involves the recognition of an accrued expense?
A)recording depreciation on a long-lived asset
B)writing off the portion of an insurance policy that has expired
C)recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period
D)recognition of bad debt losses that are expected to result from making sales on credit terms

Question

Quizplus · Accepted Answer

Recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period involves the recognition of an accrued expense. Accrued expense means an expense that has been incurred but not yet paid for. A and D involve the recognition of depreciation and bad debt expenses, respectively, while B involves the recognition of prepaid expenses.

Which of the Following Adjusting Entries Involves the Recognition of an Accrued