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AnswerMePlease
Sep 5, 2008, 08:35 AM
In setting up a current liability I debit expense and credit the liabilty. The expense then shows in the P&L even though it hasn't been paid yet. Is this correct?

AdamUTsel
Sep 5, 2008, 12:42 PM
Yes, this is correct if you are using accrual based accounting.