In financial accounting, which type(s) of accounts increase with a debit?

• A. Liabilities, revenues, and common stock
• B. Assets, expenses, and dividends (or drawings)
• C. Liabilities and expenses only
• D. Assets and revenues only

Answer: (B)

Verified step by step guidance

1. Understand the basic accounting equation: \(\text{Assets} = \text{Liabilities} + \text{Equity}\). This equation helps determine how different accounts behave with debits and credits.
2. Recall the normal balance of accounts: Assets, expenses, and dividends typically have a debit balance, meaning they increase with debits.
3. Liabilities, revenues, and common stock usually have a credit balance, so they increase with credits, not debits.
4. Therefore, identify which accounts increase with debits by focusing on those with normal debit balances: assets, expenses, and dividends (or drawings).
5. Use this understanding to eliminate incorrect options and confirm that the correct answer includes assets, expenses, and dividends as accounts that increase with a debit.