When an expense account is increased:
A)an amount is entered on the credit side of the expense account.
B)an amount is entered on the debit side of the expense account.
C)cash must always be credited.
D)stockholders' equity is not affected.

Question

Quizplus · Accepted Answer

An expense account represents a decrease in assets or an increase in liabilities, which is usually debited. Therefore, increasing an expense account requires entering an amount on the debit side of the expense account. The other options are incorrect as cash may be debited or credited depending on the transaction, and stockholders' equity may be affected depending on the type of expense and the accounting method used.

When an Expense Account Is Increased