Why Are Expenses Increased with a Debit

question 13

Multiple Choice

Why are expenses increased with a debit?

• A)They are always paid by cash, which is credited.Thus expenses are debited.
• B)They decrease stockholders' equity thus they are increased with a debit.
• C)They have the same rules of debits and credits as the retained earnings account.
• D)None of the statements are correct.

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Definitions:

Disaffirm

The act of renouncing or rejecting a legal contract or agreement, typically used in the context of minors disaffirming contracts.

Misrepresenting Age

The act of falsely stating one's age, typically for the purpose of obtaining age-restricted goods, services, or rights.

Disaffirmance

The legal right of a minor to renounce a contract, thereby being freed from any contractual obligations.

Duty

A legal or moral obligation to act or refrain from acting in a certain way.