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:

Parable

A brief story used to illustrate a point.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification, often used in sales to illustrate a point or benefit.

Problem-solution

A method or strategy that identifies a problem and then proposes one or more solutions to solve it.

Salespeople

Individuals who are responsible for selling products or services to customers, often as part of a larger sales team.