An Accountant Has Debited an Asset Account for $800 and Credited

question 104

Multiple Choice

An accountant has debited an asset account for $800 and credited a liability account for $700.Which of the following would be an incorrect way to complete the recording of the transaction?

• A)Credit an asset account for $100.
• B)Credit another liability account for $100.
• C)Credit a stockholders' equity account for $100.
• D)Debit a stockholders' equity account for $100.

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Definitions:

U.S. Safety Standards

Regulations and guidelines set forth to ensure the safety and health of consumers and workers in the United States.

Creditors

Individuals or institutions to whom money is owed by debtors or borrowers.

Credit-Reporting Agencies

Entities that collect and disseminate information about the credit history of individuals and businesses.

Fair Credit Reporting Act

A federal law designed to ensure the accuracy, fairness, and privacy of consumer information contained in the files of credit reporting agencies.