MANAGEMENT

Detailed explanation-1: -Answer and Explanation: The given statement is true. An expense account is a nominal account and all expenses incurred during the reporting period are debited in the account.

Detailed explanation-2: -Recording a Closing Entry Next, the same process is performed for expenses. All expenses are closed out by crediting the expense accounts and debiting income summary.

Detailed explanation-3: -In order to close out your expense accounts, you will need to debit the income summary account, and credit each line item expense listed in the trial balance, which reduces the expense account balances to zero.

Detailed explanation-4: -On a balance sheet, positive values for assets and expenses are debited, and negative balances are credited.

Detailed explanation-5: -As with the revenue accounts, expense accounts are closed into Income Summary. Again, the purpose of the closing entries is to “close” the balance of the temporary accounts. Since expense accounts have a normal debit balance, they will be credited in the closing entry and Income Summary will therefore be debited.