How does an expense affect the balance sheet?

Thanks for inviting. I agree with expert answers given.

When expenses are accrued, this means that an accrued liabilities account is increased, while the amount of the expense reduces the retained earnings account. Thus, the liability portion of the balance sheet increases, while the equity portion declines.

An expense increases the credit balance liabilities or reduces a company 's assets when we pay in cash. *Any expense appears within a line item in the income statement *It appears directly in the income statement and indirectly in the balance sheet.

Expenses are accounted as and when it is made in profit and loss account.The Profir that is the difference between income and expenditure is taken to balance sheet.

An expense will decrease the amount of assets or increase the amount of liabilities, and will reduce the amount of owner's or stockholders' equity.For example an expense might 1) reduce a company's assets such as Cash, Prepaid Expenses, or Inventory, 2) increase the credit balance in a contra-asset account such as Allowance for Doubtful Accounts or Accumulated Depreciation, 3) increase the balance in the liability account Accounts Payable, or increase the amount of accrued expenses payable such as Wages Payable, Interest Payable, and so on.In addition to the change in the assets or liabilities, an expense will reduce the credit balance in the Owner Capital account of a sole proprietorship, or will reduce the credit balance in the Retained Earnings account of a corporation.

expenses reduces the net income,  consequently it reduces the equity

 increase the balance in the liability account Accounts Payable, or increase the amount of accrued expenses payable such as Wages Payable, Interest Payable, and so on.