In double-entry accounting, which of the following best describes what a debit represents?

• A. An entry recorded on the right side of an account; it increases assets and expenses and decreases liabilities and equity
• B. An entry that always increases revenues and decreases expenses
• C. An entry that always decreases an account balance regardless of the account type
• D. An entry recorded on the left side of an account; it increases assets, expenses, and dividends and decreases liabilities, equity, and revenues

Answer: (D)

Verified step by step guidance

1. Understand the basic structure of a T-account in double-entry accounting, where the left side is called the debit side and the right side is called the credit side.
2. Recall that debits and credits affect different types of accounts in specific ways: debits increase asset, expense, and dividend accounts, while they decrease liability, equity, and revenue accounts.
3. Recognize that the statement 'An entry recorded on the left side of an account' refers to a debit entry, as debits are always recorded on the left side.
4. Note that debits increase assets, expenses, and dividends because these accounts have a normal debit balance, and decrease liabilities, equity, and revenues because these accounts have a normal credit balance.
5. Conclude that the best description of a debit is an entry recorded on the left side of an account that increases assets, expenses, and dividends and decreases liabilities, equity, and revenues.