Question

A business incurred an expense and paid it immediately. To record this transaction,




A. an expense is debited, and a liability is credited.


B. an expense is debited, and an asset is credited.


C. an expense is debited, and Capital is credited.


D. None of the above

Answer 1

The right answer for the question that is being asked and shown above is that: "A. an expense is debited, and a liability is credited. " A business incurred an expense and paid it immediately. To record this transaction, an expense is debited, and a liability is credited. 

Answer 2

The correct answer to the question is letter B. An expense is debited, and an asset is credited.