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 increase 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 increases with a credit, expenses increase with a debit.

Why Are Expenses Increased with a Debit