An Account Is Increased by a Debit and Has a Debit

question 90

Multiple Choice

An account is increased by a debit and has a debit balance. This account is:

• A) an expense account.
• B) a liability account.
• C) an asset account.
• D) both an expense account and an asset account.

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Definitions:

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Raw Materials

The basic materials from which products are manufactured or made.

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.