Choose the TRUE statement.
A)All asset accounts have a normal debit balance with the exception of cash which has a normal credit balance.
B)The Contributed Capital account is increased by debits.
C)When payment is made on a liability such as accounts payable,the liability account is decreased with a debit.
D)The total amount of debits to asset accounts must equal the total amount of credits to liability and stockholders' equity accounts.

Question

Quizplus · Accepted Answer

When a payment is made on a liability such as accounts payable, the liability account is decreased with a debit. This is because liabilities have a normal credit balance, and debiting them reduces their balance.

Choose the TRUE Statement