In Which of the Following Types of Accounts Are Decreases

question 66

Multiple Choice

In which of the following types of accounts are decreases recorded by debits?

• A) assets
• B) liabilities
• C) expenses
• D) drawing

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Definitions:

Return

In finance, return refers to the profit or loss generated on an investment over a specific period.

Income Statement

A financial document that reports a company's financial performance over a specific period, detailing revenue, expenses, and net income.

Revenues Earned

Income generated from normal business operations and activities, often from the sale of goods or services to customers.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenue.