PRC-1 · Chapter 4 · Question 23 of 100
What is the standard double-entry journal record required to correctly recognize an accrued expense at the end of the financial year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit Expense account, Credit Accrued Expense account
Explanation
To recognize an accrued expense, the expense for the year must be increased (Debit Expense) and the corresponding liability must be recorded (Credit Accrued Expense or Payable).
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