Which of the following represents the accounting entry when expenses are incurred on
Credit?

Question

Quizplus · Accepted Answer

When expenses are incurred on credit, it means that the payment is not made immediately but will be paid at a later date. In this case, the accounting entry would be to debit the expense account (as an increase in expenses) and credit the accounts payable account (as an increase in liabilities). Option A is incorrect because cash is not involved in this transaction. Option B is incorrect because accounts receivable is an asset account and does not relate to an expense. Option D is incorrect because accounts payable is a liability account and does not relate to income.

Which of the Following Represents the Accounting Entry When Expenses