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In an accrual adjustment for expenses incurred but not yet paid: the liability recorded when cash was received is increasing as the expense is incurred
In an accrual adjustment for expenses incurred but not yet paid:
the liability recorded when cash was received is increasing as the expense is incurred | ||
the liability recorded when cash was received is decreasing as the expense is incurred | ||
a liability is decreasing since cash is being paid for an expense incurred at the time of the adjustment | ||
a liability is increasing since cash will be paid in the future due to the expense incurred
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