The adjusting entry increases expenses and increases liabilities.
A) depreciation
B) wages
C) prepaid rent
D) revenue received from customers in advance

Name: The adjusting entry increases expenses and increases liabilities. A) depreciation B) wages C) prepaid rent D) revenue received from customers in advance
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Question

Quizplus · Accepted Answer

The adjusting entry for wages increases expenses (wage expense) and increases liabilities (wages payable) because it records wages that have been incurred but not yet paid.

The Adjusting Entry Increases Expenses and Increases Liabilities