An expense:
A)will decrease the amount of net income on the income statement.
B)will decrease the amount of Common Stock on the balance sheet.
C)will be increased with a credit to the account.
D)normally has a credit balance.

Question

Quizplus · Accepted Answer

Revenues increase net income,which increases the stockholders' equity account Retained Earnings.Since stockholders' equity,which is on the right side of the accounting equation,is increased with credits,revenues are increased with credits.Expenses decrease net income,which decreases the stockholders' equity account Retained Earnings.As a result,expenses are increased with debits.

An Expense