Incurring an expense for advertising on account would be recorded by:

Question

Quizplus · Accepted Answer

Incurring an expense for advertising would be recorded by debiting the Advertising Expense account. Option A is incorrect as liabilities are generally only credited when they are incurred, not when an expense is incurred. Option B is incorrect as assets would not be credited for this type of transaction. Option D is incorrect as assets would only be debited if an asset was acquired.

Incurring an Expense for Advertising on Account Would Be Recorded