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Part 1

Which of the following statements is true of expenses?

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Part 1

A.

Expenses increase equity, so an expense account's normal balance is a debit balance.

B.

Expenses increase equity, so an expense account's normal balance is a credit balance.

C.

Expenses decrease equity, so an expense account's normal balance is a debit balance.

D.

Expenses decrease equity, so an expense account's normal balance is a credit balance.