An adjusting entry to convert an asset to expense consists of:
A)A debit to a liability and a credit to cash.
B)A debit to an expense and a credit to cash.
C)A debit to an expense and a credit to an asset account.
D)A debit to an asset account and a credit to an expense account.

Question

Quizplus · Accepted Answer

To convert an asset to expense, we need to recognize the portion of the asset that has been used up or consumed as an expense. This is done by debiting an expense account (such as depreciation expense) and crediting the asset account (such as accumulated depreciation). Therefore, the correct answer is option C - a debit to an expense account and a credit to an asset account.

An Adjusting Entry to Convert an Asset to Expense Consists