An expense is a temporary account which reduces owner's equity or stockholders' equity. The decrease in owner's equity will offset the increase in the liability account.
An expense is a temporary account which reduces owner's equity or stockholders' equity. The decrease in owner's equity will offset the increase in the liability account.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com