Which of the following statements is NOT true?
A) Expenses increase owner's equity.
B) Expenses have normal debit balances.
C) Expenses decrease owner's equity.
D) Expenses are a negative factor in the calculation of profit.

Question

Quizplus · Accepted Answer

Expenses decrease owner's equity because they represent the cost of operating the business. They have normal debit balances and are indeed a negative factor in the calculation of profit, making statement A incorrect.

Which of the Following Statements Is NOT True