A Liability Account Is Increased by a Debit

question 82

True/False

A liability account is increased by a debit.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and engage in business and legal activities.

Limited Liability

A legal structure that protects individual investors or company owners from being personally responsible for company debts and liabilities beyond their investment.

Stockholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.

Personal Assets

Assets owned by an individual as opposed to those owned by a business or an institution.