To decrease the balance of an expense account, you would?

Prepare for the YouScience Accounting 1 Test. Enhance your skills with interactive flashcards, multiple choice questions, and detailed explanations. Get exam-ready efficiently!

Multiple Choice

To decrease the balance of an expense account, you would?

Explanation:
Expense accounts normally have a debit balance. In double-entry accounting, debits increase an expense, while credits decrease it. So when you want to lower the balance of an expense account, you would record a credit to that account. Debiting would do the opposite by increasing the expense, and the other options would either raise the balance or don’t specify the entry method.

Expense accounts normally have a debit balance. In double-entry accounting, debits increase an expense, while credits decrease it. So when you want to lower the balance of an expense account, you would record a credit to that account. Debiting would do the opposite by increasing the expense, and the other options would either raise the balance or don’t specify the entry method.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy