Question

Which of the following statements regarding accounts is correct?

a) Revenues are increased by debits.
b) Liabilities are decreased by debits.
c) Assets are decreased by debits.
d) Expenses are decreased by debits.

Answer 1

Expenses are decreased by debits in accounting.

Step-by-step explanation:

The correct statement regarding accounts is that expenses are decreased by debits.

In accounting, debits, and credits are used to record changes in different types of accounts. Debits represent increases in certain accounts, while credits represent decreases.

Expenses are a type of account that represents the cost of resources used to generate revenue. When recording an expense, it is typically debited to decrease the account balance and reflect the decrease in resources.

It's important to remember that while these general rules apply, the specific rules can vary based on the type of account and the nature of the transaction. The principles are part of the framework that ensures that the accounting equation remains balanced after every transaction.