A transaction that includes a debit to an expense and a credit to a liability indicates that:
A)revenues increased.
B)expenses decreased.
C)liabilities increased.
D)cash decreased.

Question

Quizplus · Accepted Answer

A debit to an expense account indicates an increase in expenses, while a credit to a liability account indicates an increase in liabilities. Therefore, choice C (liabilities increased) is the correct answer. Choices A (revenues increased), B (expenses decreased), and D (cash decreased) are incorrect.

A Transaction That Includes a Debit to an Expense and a Credit