The adjusting entry required to record accrued expenses includes:

Question

Quizplus · Accepted Answer

Accrued expenses are expenses that have been incurred but have not been paid for yet. Therefore, the adjusting entry required to record accrued expenses must include a debit to an expense account and a credit to a liability account. The liability account represents the amount owed to the creditor for the goods or services received. Therefore, the best choice is D – a credit to liability. None of the other answer choices accurately reflect the accounting treatment for accrued expenses.

The Adjusting Entry Required to Record Accrued Expenses Includes