A liability would be credited and an expense debited if __________. options: the business paid a creditor the business incurred an expense and did not pay the expense immediately the business bought supplies on account the business bought supplies for cash
Business · Middle School · Mon Jan 18 2021
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An expense would be debited and a liability credited if:
b. the business incurred an expense and did not pay the expense immediately.
When a business incurs an expense but does not immediately pay for it, the accounting entry involves debiting the expense account to recognize the cost incurred and crediting the liability account to acknowledge the obligation to pay in the future.