Which of the Following Statements About Expenses Is CORRECT

question 103

Multiple Choice

Which of the following statements about expenses is CORRECT?

• A) Expenses increase owner's equity, so an expense account's normal balance is a credit balance.
• B) Expenses decrease owner's equity, so an expense account's normal balance is a credit balance.
• C) Expenses increase owner's equity, so an expense account's normal balance is a debit balance.
• D) Expenses decrease owner's equity, so an expense account's normal balance is a debit balance.

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Definitions:

Inductive Generalization

A type of reasoning where conclusions about general rules are drawn from specific examples or cases.

Deductive Step

A reasoning process in deductive logic where a conclusion is logically derived from premises.

Weak

Lacking strength, effectiveness, or force in a particular context or comparison.

False

Not true or correct; erroneous or inacurrate.