TheInvoicestopic in the APS Certification Program covers double-entry accounting for recording invoices. When an incoming invoice is received, it represents an obligation to pay a vendor (a liability) and an expense (or asset, depending on the purchase). The correct journal entry is todebit the expense account(to recognize the cost incurred) andcredit the accounts payable (AP) liability account(to record the amount owed).

Option A (A debit to the asset account and a corresponding debit to the expense account): Incorrect, as recording an invoice does not typically involve debiting both an asset and an expense account. An asset might be debited for capital purchases, but the second debit to an expense account is invalid, and no credit is provided to balance the entry.

Option B (A credit to the AP liability account and a corresponding credit to the expense account): Incorrect, as crediting the expense account would reduce expenses, which is not the purpose of recording an invoice. Additionally, two credits do not form a valid journal entry without a debit.

Option C (A debit to expense and a credit to the AP liability account): Correct. Debiting the expense account (e.g., utilities, supplies) recognizes the cost incurred, and crediting the AP liability account records the obligation to pay the vendor. This is the standard entry for expense-related invoices.

Option D (A credit to expense and a debit to the AP liability account): Incorrect, as crediting the expense account would decrease expenses, which is not appropriate when recording an invoice. Debiting the AP liability would also incorrectly increase the liability.

Reference to IOFM APS Documents: The APS e-textbook underInvoicesexplains, “When an invoice is received, the journal entry debits an expense account (or asset for capital purchases) andcredits the accounts payable liability account to reflect the obligation.” The training video illustrates this with examples, such as debiting “Office Supplies Expense” and crediting “Accounts Payable” for a supply invoice, emphasizing accurate recording to ensure financial statement integrity.