Why are expenses increased with a debit?
A)They are always paid by cash, which is credited.Thus expenses are debited.
B)They decrease stockholders' equity thus they are increased with a debit.
C)They have the same rules of debits and credits as the retained earnings account.
D)None of the statements are correct.

Question

Quizplus · Accepted Answer

Expenses decrease stockholders' equity, and since equity accounts have a normal credit balance, expenses are increased with a debit to reflect the reduction in equity.

Why Are Expenses Increased with a Debit