Which of the following statements is not true?

Question

Expenses increase owner's equity

Expenses have normal debit balances

Expenses decrease owner's equity

Expenses are a negative factor in the computation of net income.

Answer 1

Expenses increase OE - is False.

Answer 2

The first one.  Expenses decrease owner's equity.

Answer 3

Expenses do not increase owners equity.  If they did owners would go out and spend lots of money!