PRC-1 · Chapter 4 · Question 62 of 100
What is the correct double-entry required to recognize an accrued expense at the end of the financial year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Expense Account, Credit Accrued Expenses
Explanation
To accrue an expense, you must increase the expense for the year (Debit Expense Account) and record the corresponding obligation to pay it in the future (Credit Accrued Expenses liability).
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