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: 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

An expense decreases net income, which in turn decreases retained earnings, a component of stockholders' equity.

An Expense