Which of the Following Statements Is TRUE of Expenses

question 90

Multiple Choice

Which of the following statements is TRUE of expenses?

• A) Expenses increase equity, so an expense account's normal balance is a credit balance.
• B) Expenses decrease equity, so an expense account's normal balance is a credit balance.
• C) Expenses increase equity, so an expense account's normal balance is a debit balance.
• D) Expenses decrease equity, so an expense account's normal balance is a debit balance.

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Definitions:

Foam

A substance formed by trapping pockets of gas in a liquid or solid, commonly used for various applications from cleaning to fire suppression.

Patch

A method of delivering medication or hormones through the skin, often used for birth control or to quit smoking.

NuvaRing

A hormonal contraceptive device worn inside the vagina that releases estrogen and progestin to prevent ovulation and pregnancy.

Barrier Method

A type of contraception that physically blocks sperm from entering the uterus, examples include condoms and diaphragms.