Prior to the adjusting process, accrued expenses have a. been incurred, not paid, and not recorded b. been incurred, not paid, but have been recorded c. not yet been incurred, paid, or recorded d. been paid but have not yet been incurred

b.been incurred, not paid, but have been recorded

Explanation:

Accrued Expenses imply outstanding expenses, which have been due but have not been paid yet. Based on accrual concept, transactions are recorded when they have been entered into & liability to pay / obligation to receive has been established - so, Accrued expense (due but liable to be paid) is recorded.

Such Expense is recorded in Journal as :

Expense Dr

To Expense Outstanding ;

where Expense is debited as per modern rule , Expense outstanding is credited for being liability increase.

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explanation:

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