Scelta multipla
Sales Discounts is a contra-_____ account and is increased with a _____.
257
views
2. Transaction Analysis
Journal Entries: Debits and Credits
Scelta multipla
Credits increase revenues, whereas debits increase which of the following accounts?
A
Equity
B
Liabilities
C
Revenues
D
Expenses
Guida verificata passo dopo passo1
Understand the basic accounting equation: Assets = Liabilities + Equity. This equation helps categorize accounts into debits and credits.
Learn the impact of debits and credits on different account types: Debits increase assets and expenses, while credits increase liabilities, equity, and revenues.
Focus on the question: It asks which accounts are increased by debits. Recall that debits increase expenses, as they represent costs incurred by the business.
Review the relationship between expenses and equity: Expenses reduce net income, which in turn decreases equity. This is why debits increase expenses rather than equity.
Confirm the correct answer: Based on the rules of debits and credits, debits increase expenses, making 'Expenses' the correct choice.
Video correlati
Pratica correlata
