A Debit to an Expense Account

question 25

Multiple Choice

A debit to an expense account

• A) decreases the owner's equity.
• B) increases owner's equity.
• C) directly affects the drawings account.
• D) has no effect on the balance sheet.

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Definitions:

Demand Decreased

A situation where there is a reduction in the quantity of a product or service that consumers are willing or able to buy at given prices.

Supply Increased

A situation where the quantity of goods or services that producers are willing to offer for sale at a given price level rises.

Mild Winter

A winter season that is warmer than average, often resulting in less snowfall and freezing temperatures.

Heating Oil

A low viscosity, liquid petroleum product used as a fuel oil for furnaces or boilers in buildings for heating purposes.