An adjusting entry can include a debit to a(n)
A)expense and a credit to an asset.
B)cash and a credit to a revenue.
C)liability and a credit to cash.
D)liability and a credit to an asset.

Question

Quizplus · Accepted Answer

An adjusting entry is made to record adjustments that are not captured in regular transactions. These adjustments typically involve accruals or deferrals of revenues or expenses. A debit to an expense account and a credit to an asset account can be an adjusting entry, reflecting an expense that has been incurred but not yet paid, resulting in an increase in an asset account. For example, if rent for the month of February was paid in advance in January, an adjusting entry would be required to record rent expense for February and reduce the prepaid rent asset account.

An Adjusting Entry Can Include a Debit to A(n)