An accountant has debited an asset account for $800 and credited a liability account for $700.Which of the following would be an incorrect way to complete the recording of the transaction?
A)Credit an asset account for $100.
B)Credit another liability account for $100.
C)Credit a stockholders' equity account for $100.
D)Debit a stockholders' equity account for $100.

Question

Quizplus · Accepted Answer

Debiting a stockholders' equity account for $100 would not balance the transaction, as it would increase the imbalance instead of correcting it.

An Accountant Has Debited an Asset Account for $800 and Credited