The Adjusting Entry to Record an Accrued Expense Is

question 142

Multiple Choice

The adjusting entry to record an accrued expense is:

• A) Decrease a liability; increase revenue.
• B) Increase an expense; increase a liability.
• C) Increase an expense; decrease a liability.
• D) Increase an asset; increase revenue.
• E) Increase an expense; decrease an asset.

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Definitions:

Aggregate Planning

A process by which a company determines optimal levels of capacity, production, subcontracting, inventory, and labor for meeting expected demand.

Forecast Quality

The accuracy and reliability of predictions regarding future demand, sales, or other market dynamics.

Supply Chains

Complex networks of suppliers, manufacturers, and distributors that produce, handle, and distribute goods and services from origin to consumer.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring that a company can meet customer orders without delays.