A Debit Is Used to Record

question 186

Multiple Choice

A debit is used to record:

• A) A decrease in an asset account.
• B) A decrease in an expense account.
• C) An increase in a revenue account.
• D) An increase in the balance of an owner's capital account.
• E) An increase in the balance of the owner's withdrawals account.

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Definitions:

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.

Income

Earnings acquired on a consistent basis through employment or investments.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specific time period.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price, over a specified period of time.