A Decrease in a Liability Account Is Recorded by a Debit

question 108

True/False

A decrease in a liability account is recorded by a debit.

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Definitions:

Compounded Monthly

Compounded monthly refers to the process where interest is added to the principal sum of a loan or deposit so that the added interest also earns interest from then on.

Compounded Monthly

A method where interest is added to the principal every month, allowing the interest to earn interest in subsequent months.

Compounded Semi-Annually

The process of calculating interest where the interest is added to the principal sum of a loan or deposit twice a year.

Mutual Fund

A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is managed by an investment company with the capital pooled from many investors.