Which of the following statements is not true?
A) Expenses increase equity.
B) Expenses have normal debit balances.
C) Expenses decrease equity.
D) Expenses are a negative factor in the computation of net income.

Question

Quizplus · Accepted Answer

Expenses are actually a decrease in equity, not an increase. When expenses are incurred, the amount of equity decreases because the company has used resources to generate revenue.

Which of the Following Statements Is Not True