An Accountant Has Debited an Asset Account for $1,000 and Credited

question 31

Multiple Choice

An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

• A) Credit an asset account for $500.
• B) Credit another liability account for $500.
• C) Credit an equity account for $500.
• D) Debit an equity account for $500.

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Definitions:

Assumptions

Unverified beliefs or ideas taken for granted without proof in reasoning, argumentation, or calculation.

Organize

To arrange or order things in a structured manner, making them more systematic and accessible.

Infant Care

The practices and routines involved in ensuring the health, safety, and well-being of babies, typically up to one year of age.

Cooperate

To work or act together towards a common goal or benefit.