Expense Accounts Have Debit Balances Because They Result in Decreases

question 95

True/False

Expense accounts have debit balances because they result in decreases in net income,retained earnings and stockholders' equity.

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Definitions:

Brokerage Commission

A charge imposed by a broker for carrying out trades or offering specific services.

Dividends

Earnings distributed to shareholders from a company's profit, generally in the form of cash or additional shares.

Outstanding Stock

Shares of a corporation's stock that have been issued and are currently held by investors, including both public investors and company officers.

Trading Securities

Trading securities are financial assets purchased by a firm with the intention of selling them in the short term to profit from price fluctuations.