Question

If an expense has been incurred but will be paid later, then:

a. nothing is recorded on the financial statements.
b. a liability account is created or increased and an expense is recorded.
c. an asset account is decreased or eliminated and an expense is recorded.
d. a revenue and an expense are recorded.

Answer 1

If an expense has been incurred but will be paid later, then a liability account is created or increased and an expense is recorded.

Step-by-step explanation:

If an expense has been incurred but will be paid later, then a liability account is created or increased and an expense is recorded.