An Adjusting Entry to Record an Accrued Expense Involves a Debit

question 95

Multiple Choice

An adjusting entry to record an accrued expense involves a debit to a(an) :

• A) expense account and a credit to a prepaid expense account.
• B) expense account and a credit to Cash.
• C) expense account and a credit to a liability account.
• D) liability account and a credit to an expense account.

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Definitions:

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, controlled through a fund system to manage small business transactions.

Auxiliary Petty Cash Record

A detailed log used to track the small transactions handled through a petty cash fund, aiding in the reconciliation and management of petty cash.

Petty Cash Voucher

A document used to record small cash payments, detailing the purpose of the payment, the amount, and the person who received the funds.

Dehydration

A condition resulting from excessive loss of body water, impairing normal bodily functions.