A Debit Is Used to Record Which of the Following

question 115

Multiple Choice

A debit is used to record which of the following:

• A) A decrease in an expense account.
• B) An increase in the owner's capital account.
• C) An increase in a revenue account.
• D) An increase in the owner's withdrawals account.
• E) A decrease in an asset account.

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a business with the aim of making a profit.

Third Party

An entity involved in a transaction besides the two main parties; in insurance, the person other than the policyholder and the insurer who may be affected by or have a claim against the policy.

Costs

The amount that must be paid or spent to buy or obtain something.

Compensation

Payment or benefits received for services rendered or damages incurred; often used in the context of employment.