Which of the Accounts Listed Below Would Be Decreased with a Debit

question 30

Multiple Choice

Which of the accounts listed below would be decreased with a debit entry?

• A)Drawings
• B)Cash
• C)Vehicle
• D)Sales

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Definitions:

Revolving Credit

A credit facility that allows a company or individual to borrow up to a pre-approved limit, pay it back, and borrow again.

Commitment Fee

A fee charged by a lender to a borrower for an unused credit line or undisbursed loan.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate operating expenses, inventory, and other short-term liabilities.

Maturity

The date on which the principal of a debt is due. Also the time from the present until that date.