How do accrual adjustments affect liabilities and expenses?
A)Accrual adjustments can increase liabilities and increase expenses.
B)Accrual adjustments can increase liabilities and decrease expenses.
C)Accrual adjustments can decrease assets and increase expenses.
D)Accrual adjustments can decrease liabilities and increase expenses.

Question

Quizplus · Accepted Answer

Each accrual adjustment involves one asset and one revenue account or one liability and one expense account.An accrual adjustment that increased a liability would also increase an expense account.

How Do Accrual Adjustments Affect Liabilities and Expenses