A debit may signify a(n)
A) increase in asset accounts.
B) increase in liability accounts.
C) increase in the capital account.
D) decrease in expense accounts.

Question

Quizplus · Accepted Answer

Debits are used to signify increases in assets accounts. This is because the accounting equation states that assets = liabilities + equity, so an increase in assets needs to be balanced out by a corresponding increase in either liabilities or equity.

A Debit May Signify A(n)