Asked by Kayla Evelyn on May 30, 2024
Verified
An adjusting entry to accrue an incurred expense will affect total liabilities.
Incurred Expense
An expense that has been recognized in the accounting period in which it is incurred, regardless of when the payment is made.
Total Liabilities
The sum of all financial debts or obligations a company owes, shown on the balance sheet.
- Illustrate the effect of adjusting entries on the representation of accounts in financial statements.
- Apprehend the effects of altering entries within asset and liability accounts.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
An adjusting entry to accrue an incurred expense means that an expense has been incurred but not yet paid or recorded. This means that a liability has been created and needs to be recorded through an adjusting entry to accurately reflect the company's financial position. Therefore, the entry affects total liabilities.
Learning Objectives
- Illustrate the effect of adjusting entries on the representation of accounts in financial statements.
- Apprehend the effects of altering entries within asset and liability accounts.