In an accrual adjustment for expenses incurred but not yet paid: the liability r

ID: 2391727 • Letter: I

Question

In an accrual adjustment for expenses incurred but not yet paid:

the liability recorded when cash was received is increasing as the expense is incurred

the liability recorded when cash was received is decreasing as the expense is incurred

a liability is decreasing since cash is being paid for an expense incurred at the time of the adjustment

a liability is increasing since cash will be paid in the future due to the expense incurred

the liability recorded when cash was received is increasing as the expense is incurred

the liability recorded when cash was received is decreasing as the expense is incurred

a liability is decreasing since cash is being paid for an expense incurred at the time of the adjustment

a liability is increasing since cash will be paid in the future due to the expense incurred

in an accural accounting if expenses incurred but not yet paid is recorded as expense in income statement and accured liabilities in balance sheet

so answer is d) a liability is increasing since cash will be paid in the future due to the expense incurred

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