A Debit Entry

question 95

Multiple Choice

A debit entry:

• A) Increases asset and expense accounts.
• B) Decreases liability and equity accounts.
• C) Increases the owner's withdrawals account.
• D) Decreases revenue accounts.
• E) All of these answers are correct.

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Definitions:

Monthly Cash Flows

The total amount of money being transferred into and out of a business, particularly during a month.

Lockbox System

A system used by companies to expedite the collection of check payments by having them processed through a bank's PO Box.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at their face value to create a return to the investors.

Collection Time

The average period it takes for a business to receive payments owed by its customers after a sale has been made.