Incurring an expense for advertising on account would be recorded by:
A)Debiting liabilities.
B)Crediting assets.
C)Debiting an expense.

Question

Quizplus · Accepted Answer

Advertising is an expense, and therefore would be recorded by debiting an expense account. The fact that it was incurred on account does not affect the recording of the expense itself. Choice A, debiting liabilities, would be incorrect because incurring an expense does not automatically create a liability. Choice B, crediting assets, would be incorrect because incurring an expense decreases assets, not increases them.

Incurring an Expense for Advertising on Account Would Be Recorded