The Normal Balance of an Expense Account Is a ________

question 163

Multiple Choice

The normal balance of an expense account is a ________ because expenses decrease ________.

• A)debit,assets
• B)debit,expenses
• C)debit,Retained Earnings
• D)credit,Retained Earnings

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Definitions:

Process Costing System

A system of accounting used in manufacturing environments where products are mass-produced and costs are accumulated over a period, rather than per job.

Processing Department

A division within a factory where a specific stage of production is completed, often involving a particular set of processes or operations.

Conversion Costs

The total expenses of direct labor plus the manufacturing overhead required to transform raw materials into completed products.

Ending Inventory

The total value or quantity of goods in stock at the end of an accounting period, reflecting purchases, sales, and adjustments during the period.