What Type of Account Is Increased with a Debit but Is

question 99

Multiple Choice

What type of account is increased with a debit but is a decrease to Retained Earnings?

• A)Liability
• B)Asset
• C)Revenue
• D)Expense

---

Definitions:

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Negotiable

Capable of being transferred or sold with ease and having the ability to be converted into cash or equivalent.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal amount.

Nonnegotiable

Nonnegotiable describes an object or agreement that cannot be modified or transferred through negotiation, often referring to instruments like checks or securities with fixed terms.