The year-end accrual adjustment to record the estimated expense for a telephone bill not yet received would include a:
A)debit to telephone payable
B)debit to cash
C)credit to accounts payable
D)credit to prepaid telephone expense

Question

Quizplus · Accepted Answer

The year-end accrual adjustment for an estimated expense involves recognizing the liability, which is done by crediting accounts payable.

The Year-End Accrual Adjustment to Record the Estimated Expense for a Telephone