To decrease the balance of a liability account, you would?

To decrease the balance of a liability account, you would?

• A. Debit the account
• B. Credit the account
• C. Increase the account
• D. Decrease the account

Answer: (A)

Liability accounts have a normal credit balance, so decreasing a liability is done with a debit. Debiting reduces the balance, while crediting would increase it. For example, paying off accounts payable debits the liability and credits cash, which lowers what you owe. The other options describe actions that would increase the liability or merely state the result without the necessary debit to the liability.

Liability accounts have a normal credit balance, so decreasing a liability is done with a debit. Debiting reduces the balance, while crediting would increase it. For example, paying off accounts payable debits the liability and credits cash, which lowers what you owe. The other options describe actions that would increase the liability or merely state the result without the necessary debit to the liability.