Question

The adjusting entry to record an accrued expense is: Multiple Choice

Answer 1

Answer:

5. Increase an expense; increase a liability.

Explanation:

Accrued expenses are expenses that have been incurred but are yet to be paid for. To record and accrued expense,

Debit Expense account (p/l)

Credit Accrued expense (b/s)

The expense account is usually in debit hence the transaction above increases the balance. The accrued expense account is usually in credit hence the above transaction increases the account balance.

As such, the right option is 5. Increase an expense; increase a liability.