A Debit to a Liability Account Indicates

question 142

Multiple Choice

A debit to a liability account indicates

• A) that the normal balance of the account is a credit.
• B) that the normal balance of the account is a debit.
• C) an increase in the liability.
• D) a decrease in the liability.

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Definitions:

Void Title

Not true title; for example, the title held by someone who knowingly or unknowingly purchased stolen goods.

French-Based Code Law

A legal system based on comprehensive written statutes and codes as a primary source of law, in contrast to common law systems; it is derived from the Napoleonic Code.

Merchant

An individual or company engaged in the buying and selling of goods for profit.

Buyer

An individual or entity that purchases goods or services from another party.