In a trial balance, how are expenses typically recorded?

Practice Questions

Q1
In a trial balance, how are expenses typically recorded?
  1. As debits
  2. As credits
  3. As liabilities
  4. As assets

Questions & Step-by-Step Solutions

In a trial balance, how are expenses typically recorded?
  • 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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