is expenses will result in decrease equity?
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is expenses will result in decrease equity?
is expenses will result in decrease equity?
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Answer:
no,expenses are ment to provide support
Answer:
Expenses cause owner's equity to decrease. Since owner's equity's normal balance is a credit balance, an expense must be recorded as a debit. At the end of the accounting year the debit balances in the expense accounts will be closed and transferred to the owner's capital account, thereby reducing owner's equity.