The adjusting entry to record an accrued expense is:
A) Decrease a liability; increase revenue.
B) Increase an expense; increase a liability.
C) Increase an expense; decrease a liability.
D) Increase an asset; increase revenue.
E) Increase an expense; decrease an asset.

Question

Quizplus · Accepted Answer

An accrued expense is an expense that has been incurred but not yet paid. The adjusting entry for an accrued expense involves increasing an expense account to recognize the expense incurred and increasing a liability account to reflect the obligation to pay in the future.

The Adjusting Entry to Record an Accrued Expense Is