Which of the following statements about the debit/credit framework is correct?
A)Asset and liability accounts have a normal debit balance.
B)To debit an account means to increase it.
C)Common Stock has a normal credit balance.
D)To credit an account means to decrease it.

Question

Quizplus · Accepted Answer

Use debits for increases in assets (and for decreases in liabilities and stockholders' equity accounts).Use credits for increases in liabilities and stockholders' equity accounts (and for decreases in assets).The normal balance for an account is the side on which it increases.Common Stock is a stockholders' equity account and has a normal credit balance.

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