Which of the following statements is true of expenses? A. Expenses increase equity, so an expense account's normal balance is a debit 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 credit balance. D. Expenses decrease equity, so an expense account's normal balance is a debit balance.

The assets and the expenses account has a normal debit balance whereas the liabilities, revenues, and the stockholder equity has a normal credit balance

Plus the expenses decreases the equity as the expenses are reflect in the retained earning statement which is also a part of the stockholder equity statement whereas the revenues increases the equity.

divyamadaan8054 divyamadaan8054 · Answer 2 · 2022-03-01T18:50:14+01:00

According to the sentences, the statements that is true of expenses include option D: Expenses decrease equity, so an expense account's normal balance is a debit balance.

What is asset and expense about?

The assets and the expenses account has a normal debit balance whereas the liabilities, revenues, and the stockholder equity has a normal credit balance.

The expenses decreases the equity as the expenses are reflect in the retained earning statement which is also a part of the stockholder equity statement whereas the revenues increases the equity.

Therefore, correct option is D.

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