What accounts are increased with debits?
A)assets and revenues
B)assets and expenses
C)liabilities and retained earnings
D)expenses and paid-in capital

Question

Quizplus · Accepted Answer

Assets and expenses are increased with debits. This is because the accounting equation states that assets = liabilities + equity, and when an asset is increased, the equity (retained earnings) also increases. Expenses are also debited, as they decrease equity (retained earnings) and represent costs incurred by the business. Revenues, liabilities, and paid-in capital are increased with credits.

What Accounts Are Increased with Debits