Question

A debit is used to record which of the following?

a) Increase in revenue
b) Increase in expenses
c) Decrease in assets
d) Decrease in liabilities

Answer 1

A debit is used to record an increase in expenses in accounting, affecting different accounts in specific ways like increasing assets or decreasing liabilities.

Step-by-step explanation:

A debit is used to record an increase in expenses. This means that when a company incurs an expense, it records that expense by debiting the appropriate expense account. In accounting, debits and credits affect accounts in different ways depending on the type of account.

For asset accounts, a debit increases the balance, while for liability accounts, a debit decreases the balance. When it comes to equity accounts, including revenues, debits decrease the balance, and credits increase it. Remember, each transaction in a double-entry accounting system includes both a debit and a credit, ensuring the accounting equation remains balanced.