The Adjusting Entry to Recognize an Unrecorded Expense Is Necessary

question 81

Multiple Choice

The adjusting entry to recognize an unrecorded expense is necessary:

• A) When an expense is paid in advance.
• B) When an expense has been neither paid nor recorded as of the end of the accounting period.
• C) Whenever an expense remains unpaid at the end of an accounting period.
• D) Because the accountant is likely to forget to pay these unrecorded expenses.