A journal entry to recognize an expense must include:
A)A credit to Accounts Payable.
B)A credit to an expense account.
C)A credit to Cash.
D)A debit to an expense account.

Question

Quizplus · Accepted Answer

When recognizing an expense, it is necessary to debit the expense account in order to increase it and reflect the amount of expense incurred. Choices A and C involve crediting accounts, which should only be done when decreasing an account balance. Choice B involves crediting an expense account, which would only serve to reduce its balance, which is opposite to what is required when recognizing an expense.

A Journal Entry to Recognize an Expense Must Include