Assets, shareholders' equity, and expenses are all increased by debits.

Name: Assets, shareholders' equity, and expenses are all increased by debits.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Assets are increased by debits, but shareholders' equity and expenses follow different rules: shareholders' equity is typically increased by credits, and expenses are indeed increased by debits, but the statement as a whole is false because it inaccurately includes shareholders' equity as being increased by debits.

Assets, Shareholders' Equity, and Expenses Are All Increased by Debits