An adjusting entry to record an accrued expense involves a debit to a(an)
A) expense account and a credit to a prepaid account.
B) expense account and a credit to Cash.
C) expense account and a credit to a liability account.
D) liability account and a credit to an expense account.

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but not yet paid. To record this, we would debit the expense account (to recognize the expense) and credit a liability account (to recognize the obligation to pay for the expense in the future). Because the expense has not yet been paid, we would not credit a prepaid account or cash. Additionally, we would not credit an expense account since expenses are always debited.

An Adjusting Entry to Record an Accrued Expense Involves a Debit