In a ledger, debit entries cause:

Question

Quizplus · Accepted Answer

Debit entries in a ledger usually represent increases in assets or expenses and decreases in liabilities, equity or revenue. Therefore, B is the most accurate answer as it correctly indicates that debit entries cause decreases in liabilities, increases in assets and decreases in equity. Option A is incorrect because debit entries do not always cause an increase in equity. Option C and D are also incorrect because they confuse the effects of debit entries with those of credit entries.

In a Ledger, Debit Entries Cause