If a company records prepayment of expenses in an asset account, the adjusting entry when all os part of the prepaid asset is used or explred would Mistuple Chorice Pesutt in a debit to o liebility and a ciedit to an asset account. Rosut in a dobit to an expense and a credit to an asset account becteas cash Cause an occrued liabitity eccound to erist Cause an adjustment to peipr expense to be oversficd and assets to be understated