A debit to an asset account indicates:

• A. an increase in a liability account
• B. a decrease in an equity account
• C. an increase in the asset account
• D. a decrease in the asset account

Answer: (C)

Verified step by step guidance

1. Understand the basic accounting equation: Assets = Liabilities + Equity. This equation forms the foundation of double-entry accounting.
2. Recall the rules of debits and credits: Debits increase asset and expense accounts, while credits increase liability, equity, and revenue accounts.
3. Focus on the asset account. A debit to an asset account means that the value of the asset is increasing. For example, if cash is received, the cash account (an asset) is debited to reflect the increase.
4. Eliminate incorrect options: A debit to an asset account does not affect liability or equity accounts directly. Therefore, options like 'an increase in a liability account' or 'a decrease in an equity account' are incorrect.
5. Conclude that the correct interpretation of a debit to an asset account is 'an increase in the asset account,' as this aligns with the rules of debits and credits in accounting.