Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 36 - No. 7)
What is the effect of a debit entry in an account?
It always increases the account balance.
It always decreases the account balance.
It increases asset and expense accounts and decreases liability, owner's equity, and revenue accounts.
It decreases asset and expense accounts and increases liability, owner's equity, and revenue accounts.
Explanation
Debits increase the normal balance of assets and expense accounts and decrease the normal balance of liability, owner's equity, and revenue accounts.
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