If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

A) decreases the balance of a stockholders' equity account
B) increases the balance of a liability account
C) increases the balance of an asset account
D) decreases the balance of an expense account

Debit Portion

The segment of a financial transaction recorded on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities or equity.

Expense Account

An account that tracks the costs incurred by a company in its operational activities, such as rent, utilities, and salaries.

Credit Portion

The segment of a financial transaction that records a decrease in assets or an increase in liabilities on a balance sheet.