When should supplies be recorded as an expense? - answer✔In the period the supplies are used,
regardless of when they were purchased
Adjusting entries for accrued expenses ensure that liabilities are reported for all amounts ______
at the end of the accounting period. - answer✔OWED
Adjusting entries help to ensure that all ______ are recorded in the period in which they are
incurred. - answer✔expenses
If an adjusting entry's debit is to an expense account, then the credit must be to... - answer✔pre
paid expense and liability
An adjusting entry is necessary to record interest expense at year-end because the interest -
answer✔has already been incurred
How do adjusting entries for accrued expenses affect liabilities and expenses? -
answer✔Adjusting entries for accrued expenses can increase liabilities and increase expenses.
A primary purpose of adjusting entries is to record events that - answer✔have occurred but that
have not yet been recorded.
Costs of assets acquired in one period that will be recorded as expense in a future period are
referred to as ______ and are initially recorded as _____. - answer✔prepaid expenses; assets
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