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:

Psychosexual Stages

Freud's theory of stages of psychological development that a child passes through, each characterized by different erogenous zones and conflicts.

Pleasure-Seeking Energies

A term likely referring to the psychoanalytic concept of drives that seek immediate gratification to maximize pleasure, NO.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral conscience and the internalization of societal norms and values.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.