The adjusting entry required to record accrued expenses includes:
A) A credit to cash.
B) A debit to an asset.
C) A credit to an asset.
D) A credit to liability.

Question

Quizplus · Accepted Answer

The adjusting entry required to record accrued expenses involves debiting an expense account and crediting a liability account (usually called Accrued Expenses Payable or Accrued Liabilities). This is because, at the end of an accounting period, some expenses may have been incurred, but not yet paid for or entered into the accounting system. Therefore, a liability is accrued, recognizing that the company owes money for these expenses, but has not yet paid them.

The Adjusting Entry Required to Record Accrued Expenses Includes