An adjusting entry to record an accrued expense involves a debit to a(an):
A) expense account and a credit to a prepaid expense account.
B) expense account and a credit to Cash.
C) expense account and a credit to a liability account.
D) liability account and a credit to an expense account.

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but has not yet been paid or recorded. Therefore, an adjusting entry is needed to record the expense by debiting the related expense account and crediting the related liability account to show the obligation to pay in the future. Choice A is incorrect because a prepaid expense account is used to record expenses that have been paid in advance but not yet used or consumed. Choice B is incorrect because cash is not involved in an adjusting entry for an accrued expense. Choice D is incorrect because a liability account would be credited, not debited in an adjusting entry for an accrued expense.

An Adjusting Entry to Record an Accrued Expense Involves a Debit