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Which of the Following Statements Is True of Expenses

Question 83

Multiple Choice

Which of the following statements is true of expenses?


A) Expenses increase stockholders' equity,so an expense account's normal balance is a credit balance.
B) Expenses decrease stockholders' equity,so an expense account's normal balance is a credit balance.
C) Expenses increase stockholders' equity,so an expense account's normal balance is a debit balance.
D) Expenses decrease stockholders' equity,so an expense account's normal balance is a debit balance.

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