If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry?
A) increases the balance of a contra asset account
B) increases the balance of an asset account
C) decreases the balance of a stockholders' equity account
D) increases the balance of an expense account

Question

Quizplus · Accepted Answer

In accounting, when an adjusting entry increases a liability with a credit, the corresponding debit often increases an expense account to recognize costs incurred but not yet paid or recorded, reflecting the matching principle of accounting.

If the Effect of the Credit Portion of an Adjusting