A Debit Is Used to Record A(n)

question 57

Multiple Choice

A debit is used to record a(n) :

• A)Decrease in an asset account.
• B)Decrease in an expense account.
• C)Increase in a revenue account.
• D)Increase in the balance of common stock.
• E)Decrease in the balance of retained earnings.

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Definitions:

Sales

The total amount of goods or services sold by a company, also a critical indicator of a company's performance and market demand.

Cost of Goods Sold

Cost of Goods Sold is the total of all expenses directly related to the manufacturing or purchasing of products that a company sells during a period.

Days in Receivables

Days in Receivables, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.

Accounts Receivable

This term refers to the money that is owed to a company by its customers for goods or services that have been delivered but not yet paid for.