The adjusting entry for an accrued expense always includes a debit to an expense account and a credit to a liability account.

Name: The adjusting entry for an accrued expense always includes a debit to an expense account and a credit to a liability account.
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Question

Quizplus · Accepted Answer

This statement is true. When adjusting for an accrued expense, the expense account is debited to record the expense that has been incurred but not yet paid, and a liability account is credited to show that the company owes money for this expense.

The Adjusting Entry for an Accrued Expense Always Includes a Debit