NABTEB Book Keeping 2015 Objective — Question 40

Question 40 of 40 from the National Business and Technical Examinations Board (NABTEB) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.

The double entry principle is applied in a trial balance by debiting

A. expenses and crediting incomesCorrect
B. profit and crediting expenses
C. incomes and crediting losses
D. profit and crediting losses

Explanation

In preparing a trial balance, expenses (and assets) are listed as debit balances, while incomes (and liabilities) are listed as credit balances, reflecting the double entry principle.

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