Which types of accounts are decreased by debits?

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Multiple Choice

Which types of accounts are decreased by debits?

Explanation:
Debits decrease accounts that normally carry credit balances. Liabilities, owners’ equity, and revenue all have credit balances in typical accounting, so applying a debit to any of these reduces its balance. For example, debiting a liability like a loan payable lowers what you owe; debiting owners’ equity (such as drawings or retained earnings) reduces the owner’s claim on the assets; and debiting a revenue account lowers the recognized revenue. Because each of these categories is reduced by a debit, all of the above accounts are decreased by debits.

Debits decrease accounts that normally carry credit balances. Liabilities, owners’ equity, and revenue all have credit balances in typical accounting, so applying a debit to any of these reduces its balance. For example, debiting a liability like a loan payable lowers what you owe; debiting owners’ equity (such as drawings or retained earnings) reduces the owner’s claim on the assets; and debiting a revenue account lowers the recognized revenue. Because each of these categories is reduced by a debit, all of the above accounts are decreased by debits.

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