If the advertising expense increases with a debit, what happens to the expense balance?

If the advertising expense increases with a debit, what happens to the expense balance?

• A. It increases
• B. It decreases
• C. It remains unchanged
• D. It shifts to revenue

Answer: (A)

Advertising expense is an expense account, and expense accounts have a normal debit balance. When you record an increase in an expense, you debit that account. Debiting the advertising expense increases its accumulated balance, so the expense balance goes up. In double-entry accounting, debits raise assets and expenses, while credits raise liabilities, equity, and revenue. Therefore, an increase in advertising expense with a debit causes the balance to rise. It wouldn’t shift to revenue, and it wouldn’t stay unchanged, since the debit entry adds to the balance.

Advertising expense is an expense account, and expense accounts have a normal debit balance. When you record an increase in an expense, you debit that account. Debiting the advertising expense increases its accumulated balance, so the expense balance goes up. In double-entry accounting, debits raise assets and expenses, while credits raise liabilities, equity, and revenue. Therefore, an increase in advertising expense with a debit causes the balance to rise. It wouldn’t shift to revenue, and it wouldn’t stay unchanged, since the debit entry adds to the balance.