Question

The business incurred an expense and paid it immediately. To record this __________. options: an expense is debited and a liability is credited an expense is debited and an asset is credited an expense is debited and Capital is credited None of the above answers are correct.

Answer 1

an expense is debited, and an asset is credited.

Answer 2

The business incurred an expense and paid it immediately. To record this an expense is debited and an asset is credited. To keep the account ledger correct, you must debit the expense and take it out of that account. Then the asset is credited because the asset is now on hand.