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Question

Question
Accruing a liability always involves expenses and liabilities. Multiple Choice increasing: increasing О decreasing; decreasing O decreasing: increasing increasing; decreasing

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Duncan

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Step 1/1

Answer: 1st Option) increasing; increasing

Accruing a liability always involves increasing expenses and increasing liabilities.

Explanation:

for accrual of liability we debit expense account (expenses increase on debit) and credit a liability (liabilities increase on credit)

Final Answer

Accruing a liability always involves increasing expenses and increasing liabilities.