Expense Accounts Normally Have Credit Balances

question 1

True/False

Expense accounts normally have credit balances.

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Definitions:

Subtotal Amounts

Intermediate sums calculated by adding together certain items, typically within a larger calculation or accounting process.

Trial Balance

An accounting report that lists the balances of all ledgers accounts in two columns, debits and credits, to ensure that the total debits equal total credits.

Chart of Accounts

An organized list of all the accounts in a company's general ledger, used for recording transactions and preparing financial statements.

Statement of Owner's Equity

A financial document showing the changes in the equity of a business over a specific period, including contributions, withdrawals, and earnings.