What effect does a debit to an expense account have?

Sharpen your skills for the AIPB Correction of Accounting Errors Test. Access flashcards and multiple choice questions with explanations and hints. Prepare effectively for your exam!

Debiting an expense account directly increases the total expenses recorded in the accounting period. Since expenses reduce the net income of a business, an increase in expenses on the income statement will lead to a decrease in net income. Therefore, when an expense account is debited, it reflects an increase in the company's costs associated with its operations, leading to diminished profit measures. This relationship is foundational in accounting, as it highlights how expenses impact the bottom line: the more the expenses, the less profit there is to report.

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