Which of the following statements,regarding the rules of debits and credits,is CORRECT?
A)An asset is increased by a credit.
B)Common stock is increased by a debit.
C)A liability is increased by a debit.
D)Revenue is increased by a credit.

Question

Quizplus · Accepted Answer

Revenue is increased by a credit, as it represents an inflow of resources or funds into the company.

Option A is incorrect as an asset is increased by a debit, representing an increase in the resources owned by the company.

Option B is incorrect as common stock is a shareholder's equity account and is increased by a credit, representing funds received from investors.

Option C is incorrect as a liability is increased by a credit, representing an increase in the company's obligations to pay for resources or funds received.

Which of the Following Statements,regarding the Rules of Debits and Credits,is