Which one of the following account groups will decrease with a debit? A. liabilities and revenues B. revenues and expenses C. assets and expenses D. assets and liabilities

Question

Business

Bradshaw

17 February, 12:03

Which one of the following account groups will decrease with a debit? A. liabilities and revenues B. revenues and expenses C. assets and expenses D. assets and liabilities

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Answers (1)

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Paxton · Answer 1

A. Liabilities and Revenues.

Explanation:

Account groups discussed in the question above consist of following debit balances:

Assets is a Balance Sheet Item and increases with Debit Entry and normally have Debit Balance. Liabilities is a Balance Sheet Item and decreases with Debit Entry and normally have Credit Balance. Revenues is a Profit & Loss Statement Item and decreases with a Debit Entry and normally have Credit Balance. Expenses is a Profit & Loss Statement Item and increases with a Debit Entry and normally have Debit Balance.

Hence A will be correct option as both Liabilities and Revenues account groups will decrease with a Debit.