When a prepaid expense initially recorded as an asset is incurred, the adjusting entry includes ________.
A) a debit to an asset
B) a credit to a liability
C) a credit to an expense
D) a debit to an expense

Question

Quizplus · Accepted Answer

When a prepaid expense is incurred, the adjusting entry involves debiting an expense account to recognize the expense and crediting the prepaid asset account to reduce it.

When a Prepaid Expense Initially Recorded as an Asset Is