What Type of Account Is Increased with a Debit but Is

question 118

Multiple Choice

What type of account is increased with a debit but is a decrease to retained earnings?

• A) Liability
• B) Asset
• C) Revenue
• D) Expense

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Expand

To increase in size, number, or scope, such as a business growing its operations or a market increasing its reach.

Internal Economies

Cost-saving measures that arise from the expansion of a firm, affecting the production process internally.

External Economies

Benefits that a firm obtains due to the actions of others or external factors, leading to reduced costs.