A Debit Is Used to Record Which of the Following

question 90

Multiple Choice

A debit is used to record which of the following?

• A)A decrease in an asset account.
• B)A decrease in an expense account.
• C)An increase in a revenue account.
• D)An increase in a contributed capital account.
• E)An increase in the dividends account.

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Definitions:

Corporate Bond

A corporate bond is a debt security issued by a corporation to raise funding, which promises to pay back the principal along with interest at a specified maturity date.

Higher Yield

Refers to investments offering a greater return in terms of interest or dividends, often accompanied by higher risk.

Effective Annual Rate

The interest rate on an investment or loan that reflects the actual annual rate of interest, accounting for compounding over a given period.