When an Expense Account Is Increased

question 116

Multiple Choice

When an expense account is increased:

• A)an amount is entered on the credit side of the expense account.
• B)an amount is entered on the debit side of the expense account.
• C)cash must always be credited.
• D)stockholders' equity is not affected.

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Definitions:

Functional

Working or operating in a way that fulfills the purpose or task for which something was designed.

Upper Class

A social group at the top of a socioeconomic hierarchy, usually possessing significant wealth, power, and influence.

Capitalist Economy

An economic system in which private individuals rather than the state own and control property and businesses, and the production of goods and services is based on supply and demand in the market.

Accumulated Wealth

The total assets amassed by an individual, family, or institution over time, including money, investments, real estate, and valuable possessions.