An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?
A) Credit an asset account for $500.
B) Credit another liability account for $500.
C) Credit an owner's equity account for $500.
D) Debit an owner's equity account for $500.

Question

Quizplus · Accepted Answer

Debiting an owner's equity account for $500 would not balance the transaction, as it would increase the imbalance between debits and credits. The transaction needs an additional $500 credit, not a debit.

An Accountant Has Debited an Asset Account for $1,000 and Credited