If The Debit Portion Of An Adjusting Entry Is To An Asset Account, Then The Credit Portion Must Be To A Liability Account (True / False)
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The Answer Is "False" If the debit portion of an Adjusting Entry is to an Asset Account , then the credit portion must be a Liability is false as when we debit a Prepaid Expense Account or an Accrued Revenue Account as a Current Asset , then we credit an Expense Account or a Revenue Account . The following adjusting entries in which the debit portion shows a Prepaid Expense Account or an Accrued Revenue Account and credit portion shows an Expense Account or a Revenue Account are shown below: 1. Prepaid Expense a/c XXX Expense a/c XXX ...