Which of the following statements about the debit/credit framework is correct?
A)All asset accounts have a normal debit balance with the exception of cash,which has a normal credit balance.
B)The Common Stock account is increased by debits.
C)When payment is made on a liability such as accounts payable,the liability account is decreased with a debit.
D)The total amount of asset accounts must equal the total amount of liability accounts minus the total amount of stockholders' equity accounts.

Question

Quizplus · Accepted Answer

Accounts Payable,a liability account,is decreased with a debit.All asset accounts,including cash,have a normal debit balance.Common Stock is a stockholders' equity account and,as such,is increased by credits.The accounting equation is assets equal liabilities plus (rather than minus)stockholders' equity.

Which of the Following Statements About the Debit/credit Framework Is