At the end of the year,accrual adjustments could include a:
A) debit to an expense and a credit to an asset.
B) credit to a revenue and a debit to an expense.
C) debit to cash and a credit to Common Stock.
D) debit to an expense and a credit to a liability.

Question

Quizplus · Accepted Answer

Accrual adjustments at the end of the year typically involve recognizing expenses that have been incurred but not yet paid or recorded. This would result in a debit to an expense account, and a credit to a liability account. Therefore, option D is the correct choice. Option A is incorrect as it involves a credit to an asset which is not typical of accrual adjustments. Option B is incorrect as it involves a credit to revenue which typically indicates earned revenue and not accrued revenue. Option C is incorrect as it involves a debit to cash which is not typical of accrual adjustments.

At the End of the Year,accrual Adjustments Could Include A