Which of the Following Accounts Is Decreased with a Debit

question 16

Multiple Choice

Which of the following accounts is decreased with a debit?

• A) Notes Payable
• B) Cash
• C) Interest Expense
• D) Owner's Withdrawals

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Definitions:

Tax Accounting

The method or process of preparing tax returns and tax payments, and the planning of financial transactions to minimize tax liabilities.

Limited Liability Partnerships (LLP)

A legal structure for businesses where partners' liabilities are limited to their investment in the company, protecting personal assets from business debts.

Personal Liability

Personal liability is an individual's legal responsibility to repay debt or fulfill obligations from personal assets if the business or venture they are involved in fails to meet these obligations.

Pass-Through Tax Entity

A business structure that avoids corporate tax, instead, profits and losses are passed through to the individual owners' tax returns.