A debit to an expense account
A) decreases the owner's equity.
B) increases owner's equity.
C) directly affects the drawings account.
D) has no effect on the balance sheet.

Question

Quizplus · Accepted Answer

A debit to an expense account increases the expense, which decreases net income and, consequently, the owner's equity. Expenses reduce the profitability of a business, and since owner's equity is directly tied to the business's profitability, an increase in expenses results in a decrease in owner's equity.

A Debit to an Expense Account