the normal balance of each of the five basic categories of balance sheet and inc

Question

the normal balance of each of the five basic categories of balance sheet and income statement accounts are either debit or credit balanced. Which of the following is not correct?

Ownership equity: A debit balanced account

Liability: A credit balanced account

Expense: A debit balanced account

Asset: Debit balanced account

2)

A direct expense is:

controllable by the accountant employed by the business

deducted from a department's contributory income

the responsibility of, and controllable by, a department head

allocated to a department without a supporting invoice

controllable by the accountant employed by the business

deducted from a department's contributory income

the responsibility of, and controllable by, a department head

allocated to a department without a supporting invoice

Explanation / Answer

1) Expenses, assets always has debit balance but liabilities, equity and revenue always has credit balance.

so in above question a) Ownership equity: A debit balanced account is not correct.

2) Direct expenses is not allocated expenses and not controllable by accountants but direct expenses is controllabl by department head and direct expenses is responsibiliy of department head.

so answer is c) the responsibility of, and controllable by, a department head

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