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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

A debit is used to decrease which of the following types of accounts?

Liability accounts

Dividend accounts

Asset accounts

Expense accounts

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Verified step by step guidance

Understand the concept of a debit: In accounting, a debit is an entry that increases asset or expense accounts and decreases liability, equity, or revenue accounts.

Review the types of accounts listed in the problem: Liability accounts, Dividend accounts, Asset accounts, and Expense accounts.

Recall the effect of debits on each type of account: Debits decrease liability accounts, increase dividend accounts, increase asset accounts, and increase expense accounts.

Focus on the question: The problem specifically asks which type of account is decreased by a debit. Based on the explanation above, liability accounts are decreased by a debit.

Conclude the reasoning: The correct answer is 'Liability accounts' because debits reduce the balance of liabilities, while they increase the balance of the other account types listed.