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:

Causal Inferences

Causal inferences are conclusions about cause-and-effect relationships, often drawn from experiments or observational studies, looking at how one variable influences another.

Right Hemisphere

The half of the brain that controls the left side of the body, associated with creativity, spatial ability, and the processing of visual and auditory stimuli.

Left Hemisphere

The left side of the brain, primarily responsible for controlling the right side of the body and functions such as speech, logic, and analytical thinking.

Right Temporal Lobe

The portion of the brain located beneath the right temple, responsible for processing auditory information and contributing to the understanding of language and the integration of memories.