Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:
A) Net expenses.
B) Accrued expenses.
C) Prepaid expenses.
D) Intangible expenses.
E) Unearned expenses.

Question

Quizplus · Accepted Answer

Incurred but unpaid expenses refer to expenses that have been accrued but not yet paid. During the adjusting process, they are recorded with a debit to an expense account and a credit to a liability account. This is known as an accrued expense, which represents an obligation to pay in the future. Therefore, the best choice is option B, accrued expenses. Options A, C, D, and E do not accurately describe this type of expense.

Incurred but Unpaid Expenses That Are Recorded During the Adjusting