What type of account is increased by adjusting entries for accrued expenses?

Adjusting entries for accrued expenses directly impact the financial records by increasing an expense account. Accrued expenses represent costs that have been incurred but not yet paid or recorded in the accounts. When an adjusting entry is made for accrued expenses, it recognizes the obligation to pay for those costs in the current accounting period, thereby increasing the expense account.

This adjustment ensures that the expenses are accurately reflected in the period in which they were incurred, following the matching principle of accounting, which states that expenses should be matched with the revenues they help to generate. By increasing the expense account, the financial statements provide a clearer picture of the company's financial performance and obligations at the reporting date. This is essential for accurate financial reporting and compliance with accounting standards.