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 computation of net income.

Question

Quizplus · Accepted Answer

Expenses actually decrease owner's equity, so statement A is not true. Expenses have normal debit balances and are a negative factor in the computation of net income.

Which of the Following Statements Is Not True