Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are called
A) Operating expense
B) Prepaid expenses
C) Unearned expense
D) Accounts payable
E) Accrued expenses

Question

Quizplus · Accepted Answer

Incurred but unpaid expenses are called accrued expenses. They are recorded during the adjusting process with a debit to an expense account and a credit to a liability account. Therefore, the correct answer is E, accrued expenses.

Incurred but Unpaid Expenses That Are Recorded During the Adjusting