Which of the following accounts is increased by a debit? A. Accumulated Depreciation B. Federal...
Question:
Which of the following accounts is increased by a debit?
A. Accumulated Depreciation
B. Federal Income Tax Withheld
C. Prepaid Insurance
D. Unearned Revenue
Debits and Credits:
Assets, liabilities, equity, revenue, and expense accounts have normal account balances. The normal account balances determines whether the account is increased or decreased by a debit or a credit. Debits and credits are used to increase or decrease an account when preparing journal entries to post to the general ledger.
Answer and Explanation: 1
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View this answerAnswer: C. Prepaid Insurance
Explanation:
Prepaid insurance is an asset account that is increased by a debit and decreased by a credit. When an...
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Understanding Debits and Credits in Accounting
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