If, during an accounting period, an expense item has been incurred and consumed but not yet paid for or recorded, then the end-of-period adjusting entry would involve
A)a liability account and an asset account.
B)an asset or contra asset account and an expense account.
C)a liability account and an expense account.
D)a receivable account and a revenue account.

Question

Quizplus · Accepted Answer

If an expense has been incurred but not yet paid for, it means that the company owes money to someone else, creating a liability. Therefore, an adjusting entry would involve a liability account (to record the amount owed) and an expense account (to record the expense incurred).

If, During an Accounting Period, an Expense Item Has Been