Which of the Following Statements Is True of Expenses

question 131

Multiple Choice

Which of the following statements is true of expenses?

• 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:

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.

Hypnotic Responsiveness

An individual's susceptibility to suggestions made during hypnosis.

Positive Attitudes

A mental state involving constructive thinking, optimism, and a positive outlook towards events, people, and situations.

High Extraversion Score

Indicates an individual who exhibits traits associated with extraversion, such as sociability, talkativeness, and assertiveness, to a greater degree than average.