Which of the following statements is true of expenses?
A) Expenses increase equity, so an expense account's normal balance is a credit balance.
B) Expenses decrease equity, so an expense account's normal balance is a credit balance.
C) Expenses increase equity, so an expense account's normal balance is a debit balance.
D) Expenses decrease equity, so an expense account's normal balance is a debit balance.
D
You might also like to view...
For revenue arrangements with multiple performance obligationsand it is difficult to estimate what the good or service would sell for as standalone unitsthe company should combine the items into a new aggregated revenue item and allocate the total transaction price to this new separate revenue item.
a. true b. false
Using a weighted system, requirements and restraints should be given equal weights
Indicate whether the statement is true or false