Which account is least likely to be credited when an expense is recorded?
A)Cash
B)Accounts Payable
C)An account with the word "Prepaid" in its title
D)Accounts Receivable

Question

Quizplus · Accepted Answer

Accounts Receivable would be credited when customers pay on account (rather than when an expense is recorded).An expense paid in cash would be recorded as a debit to an expense account and a credit to Cash.An expense which is unpaid would be recorded as a debit to an expense account and a credit to Accounts Payable.When cash was paid before goods or services are used,an asset with the word "Prepaid" might be in its account title.Later,when the related expense is incurred,the related journal entry would include a debit to an expense account and a credit to that "Prepaid" asset account.

Which Account Is Least Likely to Be Credited When an Expense