Incurring an expense
A)decreases assets and liabilities.
B)decreases stockholders' equity.
C)leaves stockholders' equity unchanged.
D)is basically the same as a liability.

Name: Incurring an expense A)decreases assets and liabilities. B)decreases stockholders' equity. C)leaves stockholders' equity unchanged. D)is basically the same as a liability.
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Question

Quizplus · Accepted Answer

Incurring an expense decreases stockholders' equity because it reduces net income, which is a component of equity.

Incurring an Expense