The Adjusting Entry to Recognize an Unrecorded Expense Is Necessary

Multiple Choice

The adjusting entry to recognize an unrecorded expense is necessary:

A) When an expense is paid in advance.
B) When an expense has been neither paid nor recorded as of the end of the accounting period.
C) Whenever an expense remains unpaid at the end of an accounting period.
D) Because the accountant is likely to forget to pay these unrecorded expenses.