In the context of T-accounts, how are expenses tracked?

In the context of T-accounts, expenses are tracked on the debit side. When an expense is incurred, it is recorded as a debit entry, which increases the total expenses. This reflects the fundamental accounting principle that expenses reduce equity since they represent costs that ultimately reduce profit on the income statement.

By using debits to track expenses, accountants can effectively monitor the financial health of an organization. Accurate expense tracking is crucial for preparing financial statements and analyzing overall business performance. Meanwhile, credit entries would actually decrease the balance in an expense account, which is why they do not support expense tracking.