10) An adjusting entry to record an accrued expense involves a debit to alan) 5.88 Points expense account and a credit to a prepaid account liability account and a credit to an expense account expense account and a credit to Cash. expense account and a credit to a liability account. 11) Which of the following properly describes a deferral? 5.88 Points Cash is paid in the same time period that an expense is incurred Cash is received after revenue is recognized Cash is paid after expense is incurred. Cash is received before revenue is recognized 12) The falure to properly record an adjusting entry to accrue a revenue tem will in an 5.88 Points understatement of revenues and an understatement of assets understatement of revenues and an understatement of liabilities overstatement of revenues and an overstatement of liabilities. overstatement of revenues and an overstatement of assets. 13) At the time a company prepays a cost 5.88 Points credits an asset account and debits an expense account debits an expense account to match the expense against revenues recognized is credits a liability account to show the obligation to pay for the service in the future debits an asset account to show the service or benefit it will receive in the future