To increase the balance of an asset account, you would?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the YouScience Accounting 1 Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Elevate your readiness for your exam!

Multiple Choice

To increase the balance of an asset account, you would?

Explanation:
In accounting, asset accounts have normal debit balances. An increase to an asset is recorded with a debit entry, while a credit entry would reduce the asset. So to increase the balance of an asset account, you debit it. For example, if you buy equipment with cash, you would debit the Equipment (asset) account, which increases assets, and credit Cash (also an asset) if you paid with cash. The idea is that debits expand assets, while credits shrink them. The other phrases describe the direction conceptually but don’t specify the entry method.

In accounting, asset accounts have normal debit balances. An increase to an asset is recorded with a debit entry, while a credit entry would reduce the asset. So to increase the balance of an asset account, you debit it. For example, if you buy equipment with cash, you would debit the Equipment (asset) account, which increases assets, and credit Cash (also an asset) if you paid with cash. The idea is that debits expand assets, while credits shrink them. The other phrases describe the direction conceptually but don’t specify the entry method.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy