A debit may signify a(n)

Question

BlackTom AI · Accepted Answer

Reiterating the question: A debit may signify a(n) [decrease in liability accounts].

Option 1: increase in the common stock account. In accounting, common stock is part of shareholders’ equity and typically carries a credit balance. Debiting (not crediting) this account would reduce equity, not increase it. Therefore this statement is incorrect.

Option 2: decrease in liability accounts. This is correct because liabilities normally have credit balances, and a debit reduces those balances. Debits are used to lower amounts owed to creditors, so this option aligns with the standard double-entry rule for liabilities.

Option 3: decrease in asset accounts. Assets normally have debit balances, and debiting an asset increases it. Therefore, a decrease in asset accounts would more likely require a credit, not a debit, making this option incorrect.

Option 4: decrease in the dividends account. The dividends (or distributions) account is a temporary equity account that typically carries a debit balance; recording a dividend increases this account (a debit). A decrease in this account would require a credit, not a debit. Thus this statement is inaccurate.

A debit may signify a(n)单项选择题

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