Question

The recording of wages earned but not yet paid is an example of an adjustment that ________________.

• A. apportions revenues between two or more periods
• B. recognises an accrued expense
• C. recognise an unrecorded reveue
• D. None of the above

Answer 1

The correct option is B recognises an accrued expense

Accrued expenses are expenses that have occurred, but are not yet recorded in the company's general ledger. This means these expenses will not appear in the financial statements unless an adjusting entry is passed prior to issuing the financial statements.