An adjusting entry to record an unrecorded liability usually includes a credit to

Question

Quizplus · Accepted Answer

An unrecorded liability means that the liability has not been entered into the accounting system. Therefore, to record it, we need to credit the liability account to reflect the increase in the amount owed. The other options (B, C, and D) do not reflect an increase in a liability and thus are not appropriate for recording an unrecorded liability.

An Adjusting Entry to Record an Unrecorded Liability Usually Includes