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In a trial balance, how are expenses typically recorded?
Practice Questions
Q1
In a trial balance, how are expenses typically recorded?
As debits
As credits
As liabilities
As assets
Questions & Step-by-Step Solutions
In a trial balance, how are expenses typically recorded?
Steps
Concepts
Step 1: Understand what a trial balance is. A trial balance is a list of all the accounts in the accounting system and their balances.
Step 2: Know that accounts are divided into two main categories: debits and credits.
Step 3: Recognize that expenses are costs incurred by a business to generate revenue.
Step 4: Learn that in accounting, expenses are recorded as debits.
Step 5: Understand that when expenses are recorded as debits, they increase the total amount of debits in the trial balance.
Step 6: Remember that the total debits must equal the total credits in a trial balance for it to be balanced.
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