Question

Which one of the following account groups will decrease with a​ debit? A. liabilities and revenues B. revenues and expenses C. assets and expenses D. assets and liabilities

Answer 1

Answer:

A. Liabilities and Revenues.

Explanation:

Account groups discussed in the question above consist of following debit balances:

• Assets is a Balance Sheet Item and increases with Debit Entry and normally have Debit Balance.

• Liabilities is a Balance Sheet Item and decreases with Debit Entry and normally have Credit Balance.

• Revenues is a Profit & Loss Statement Item and decreases with a Debit Entry and normally have Credit Balance.

• Expenses is a Profit & Loss Statement Item and increases with a Debit Entry and normally have Debit Balance.

Hence A will be correct option as both Liabilities and Revenues account groups will decrease with a Debit.