Question

In which of the following types of accounts are decreases recorded by debits? a.assets b.dividends c.liabilities

Answer 1

Answer:

The correct answer is C

Explanation:

Liabilities is the legal financial debts or the obligation of the company which arise during the course of the operations of the business.

The debit increases the following accounts which are expense or the assets accounts. And decreases the equity, liability and revenue accounts.

In other words, the accounts which are decreased through debits are the liabilities which involve Interest Payable, Notes Payable and Accounts Payable. And Stockholders' Equity which involve retained earnings and common stock.