A debit is used to decrease which of the following types of accounts?

• A. Liability accounts
• B. Dividend accounts
• C. Asset accounts
• D. Expense accounts

Answer: (A)

Verified step by step guidance

1. Understand the concept of a debit: In accounting, a debit is an entry that increases asset or expense accounts and decreases liability, equity, or revenue accounts.
2. Review the types of accounts listed in the problem: Liability accounts, Dividend accounts, Asset accounts, and Expense accounts.
3. Recall the effect of debits on each type of account: Debits decrease liability accounts, increase dividend accounts, increase asset accounts, and increase expense accounts.
4. Focus on the question: The problem specifically asks which type of account is decreased by a debit. Based on the explanation above, liability accounts are decreased by a debit.
5. Conclude the reasoning: The correct answer is 'Liability accounts' because debits reduce the balance of liabilities, while they increase the balance of the other account types listed.