Asked by Silvia Montañes Sintes on Jun 17, 2024
Verified
The adjusting entry to record an accrued expense is:
A) Increase an expense; increase a liability.
B) Increase an asset; increase revenue.
C) Decrease a liability; increase revenue.
D) Increase an expense; decrease an asset.
E) Increase an expense; decrease a liability.
Accrued Expense
Expenses that have been incurred but not yet paid or recorded in the financial statements.
Adjusting Entry
An entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.
- Notice and catalogue adjusting entries for accrued expenses and revenues, considering their repercussions on financial statements.
Verified Answer
GD
GRIEGO DANIELLEJun 19, 2024
Final Answer :
A
Explanation :
Accrued expenses are expenses that have been incurred but not yet paid. To record an accrued expense, we need to increase an expense account and increase a liability account. This is because we are recognizing an expense that we owe but have not yet paid, which creates a liability on our balance sheet. Therefore, the correct option is to increase an expense and increase a liability (Choice A).
Learning Objectives
- Notice and catalogue adjusting entries for accrued expenses and revenues, considering their repercussions on financial statements.