In an accrual adjustment for expenses incurred but not yet paid:
A)a liability is decreasing since cash is being paid for an expense incurred at the time of the adjustment.
B)the liability recorded when cash was received is increasing as the expense is incurred.
C)the liability recorded when cash was received is decreasing as the expense is incurred.
D)a liability is increasing since cash will be paid in the future due to the expense incurred.

Question

Quizplus · Accepted Answer

This type of deferral adjustment involves increasing an expense account on the income statement and decreasing an asset on the balance sheet.

In an Accrual Adjustment for Expenses Incurred but Not Yet