Which of the following debit and credit rules is correct?

• A. Debiting a liability account increases its balance.
• B. Debiting an asset account increases its balance.
• C. Crediting a revenue account decreases its balance.
• D. Crediting an expense account increases its balance.

Answer: (B)

Verified step by step guidance

1. Understand the basic rules of debits and credits in accounting: Debits increase asset and expense accounts, while credits increase liability, equity, and revenue accounts.
2. Analyze the first statement: 'Debiting a liability account increases its balance.' This is incorrect because debiting a liability account decreases its balance.
3. Evaluate the second statement: 'Debiting an asset account increases its balance.' This is correct because debits increase asset accounts.
4. Examine the third statement: 'Crediting a revenue account decreases its balance.' This is incorrect because credits increase revenue accounts.
5. Review the fourth statement: 'Crediting an expense account increases its balance.' This is incorrect because credits decrease expense accounts.