A debit is used to record which of the following:
A)A decrease in an asset account.
B)A decrease in an expense account.
C)An increase in a revenue account.
D)An increase in the common stock account.
E)An increase in the dividends account.

Question

Quizplus · Accepted Answer

Debits are used to increase asset and expense accounts and decrease liability, equity, and revenue accounts. Therefore, an increase in the dividends account, which is a distribution to shareholders and effectively reduces equity, is correctly recorded with a debit.

A Debit Is Used to Record Which of the Following