Expenses normally carry a _______ balance and are shown in the ______________.
A)Debit;Statement of stockholders' equity
B)Debit;Income statement
C)Credit;Balance sheet

Question

Quizplus · Accepted Answer

Expenses are recorded with a debit balance and are shown on the income statement, which reflects the expenses incurred during a specific period of time. Option A is incorrect because expenses do not affect the statement of stockholders' equity directly, but they may indirectly through their impact on net income. Option C is incorrect because credits increase liabilities, equity or revenues, but expenses are not any of those categories.

Expenses Normally Carry a _______ Balance and Are Shown in the ______________

Expenses Normally Carry a _ Balance and Are Shown in the ________