In a trial balance, total debits must always equal total credits. Wages Expense b. Which of the following accounts would not be included on the Balance sheet? Memorize rule: debit revenue down, credit revenue up. Apr. E) None of these. Analytical cookies are used to understand how visitors interact with the website. Increases the balance of a contra asset account. A) A credit to an asset account, a debit to a liability account B) A debit to an asset account, a credit to a liability account C) A debit to an asset account, a credit to an owners' equit, Which of the following is not a liability? Common Stock and Rent Expense b. Identify the financial statement (or statements) that each account would appear on. Accounts receivable B. C. decreases asset and expense accounts and increases liability, common stock, and revenue accounts. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Accounting Play content is for education and information only. Increases and decreases of the same account are common with assets. 1) Which of the following accounts decreases with a credit? How debits and credits affect liability accounts \end{array} 30: Employees earned $600 in salaries that will be paid May 2. a. accounts receivable b. cash c. building d. notes payable, Which of the following accounts would probably be contained in an adjusted trial balance, but not in a trial balance? Decrease a liability; increase revenue. B) Increase in assets, increase in liabilities. Depreciation Expense b. These cookies will be stored in your browser only with your consent. Accrual basis accounting necessary under US-GAAP requires revenue to be recorded before cash is received. The trial balance is also known as the balance sheet. A business might need to reduce the revenue account if a sale is returned. Salaries Payable c. Unearned Revenue d. Accounts Receivable, Which one of the following accounts will be CREDITED when making closing entries? For each transaction, there must be at least one debit amount and c. Accounts receivable. (Deferred Expense) D) accounts payable. a. The cookie is used to store the user consent for the cookies in the category "Other. \text{Net income }&2,350,000\\ Additional Paid-in Capital b. Prepaid Rent c. Revenue d. Notes e. Payable Inventory. b. is decreased by credits. Sales revenues b. This report, NTUF's annual study of the tax . b. Cash $ 80,000 Accounts payab; Use the following information to prepare a statement of cash flows for the Ace Company for the year ended December 31, 2020. Depreciation Expense b. It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet. Capital and Investments C. Rent income and Loan D. Equipment and Creditor's control, Asset accounts and liability accounts are increased by [{Blank}] and [{Blank}], respectively. A debit increases the balance and a credit decreases the balance. Cash b. Service Fees Earned. B) It is increased with credit entries. Sales Revenue. Notes Payable (L) b. Allowance for Uncollectible Accounts. Cash; Accounts Receivable; Collins, Capital c. Accounts Paya, Indicate whether a debit or credit decreases the normal balance of each of the following accounts. Accounts Payable B. C. an increase in accrued liabilities. A. copyright 2003-2023 Homework.Study.com. c. Accumulated depreciation. Which of the, Which of the following groups of accounts are increased with credits? The accounting equation diagram visually displays how accounts increase and decrease. a. Sales c. Purchases d. Account receivables, Which account below should be debited to record receiving a payment on an account receivable? A D 6 Q Assets and expenses both increase with a debit and therefore have debit ending balances. A. increase in inventory B. decrease in notes payable C. decrease in common stock D. increase in accounts receivable E. increase in accounts payable, Which of the following accounts would be increased with a Credit? Taxes Payable (L) C) Collect cash from customer for services provided on account last month.D) Pay dividends to current stockholders. Careful, as banks refer to debit cards, credit cards, account debits, and account credits differently than the accounting system. - Increasing the accounts payable period. B. In which of the following types of accounts are increases recorded by credits? b) Allowance for Doubtful Accounts. The cookie is used to store the user consent for the cookies in the category "Analytics". Cash. (Deferred Expense) a. Which of the following is true of the cash account? Accounts Payable: B Principal payments will reduce the loan with a debit and increase with a credit. Cash increases assets, so it is a debit balance account. Under the accrual basis, Protection Home will record $2,200 of service revenue for the year. A. Memorize rule: Assets = Liabilities + Equity, Memorize rule: the sum of all assets will equal the sum of liabilities + equity, Each account generally will have an ending debit balance or credit balance, depending on the account type. A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n): a) Journal b) Trial balance c) Posting d) Account. Vehicles and Stationery B. Which of the following would not be included on a balance sheet? a. d. Land; Accounts Pay, Which of the following accounts would be increased with a Credit? Under the accrual basis, for the two months ending February 28, the law firm should record advertising expense of $600. Which of the following accounts is credited? All right reserved. c. Prepaid Rent. a.common stock, revenues, expenses b.liabilities, common stock, revenues Accounts Payable. Which of the following is the correct formula to calculate the debt ratio? c. Entry to record the consumed portion of an expense paid in advance, Which of the following is not a correct rule of debits and credits? Accounts Payable increases liability, so it is a credit balance account. Average balance of accounts receivables. Each alternative has an Interest Payable (CR). The system of accounting in which every transaction affects at least two accounts is called the double-entry system. Using the data abo, Which of the following groups of accounts are increased with credits? Say a $500 internet bill arrives for May service, but is not due until next month. c. Interest payable. Investment income. a. inventory b. increase in accounts receivable c. increase in accounts payable d. none of the above, Which of the following accounts will usually appear In the post-dosing trial balance? A) Interest Receivable. This account is a(n): a) expense account. b. a. Land e. Accounts Receivable i. (Accrued Expense). a. They decrease stockholders' equity thus they are increased with a debit. The Park Peonies Law Firm prepays for advertising in the local newspaper. An Account that would be decreased by a credit is: A) Cash. The accrual method is an easier accounting method to follow than cash accounting because it generally requires less knowledge of accounting concepts and principles. Createyouraccount, Answer: c. Accounts Payable; Unearned Revenue; Collins, Capital. d. Cash. The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. a. Accounts Receivable c. Utilities Expense d. Equipment e. Prepaid Rent f. Accounts Payable g. Dividends h. Cash i. Servi, Which of the following adjusting entries will cause an increase in revenues and a decrease in liabilities? A. A) It normally has a credit balance. $41,300 c. $35,000 d. $28,700, Which of the following types of entries would NOT usually be made? C) Purchasing supplies on account. c) not affected by accounts receivable. a. cash and notes payable b. salaries expense and retained earnings c. sales revenue and accounts receivable d. common stock (capital stock) and accounts payable. a. Which of the following groups of accounts increase with a credit? e. Revenue for services rendered. Indicate whether a debit or credit decreases the normal balance of each of the following: a. C. Common Stock. Now assume the honest gardener returns, apologizing that there was a mistake and the services should have been $800. For each transaction, identify what type of adjusting entry would be needed. Which of the following accounts normally carries a credit balance? B) Expenses decrease equity, so an expense account's normal balance is a debit balance. a. Which of following transactions represents an external transaction? Transactions to expense accounts will be mostly debits, as expense totals are constantly increasing. On March 1, 2023, the U.S. Department of Justice (the "DOJ") unsealed criminal insider trading charges, and the SEC filed a parallel civil complaint, against the Executive Chairman of a publicly-traded healthcare company based on stock sales made pursuant to Rule 10b5-1 trading plans. Rent Expense: I D) Increase in assets, increase in stockholders equity. A. Vehicles and Stationery B. First step to memorize: Debit asset up, credit asset down. Asset accounts, especially cash, are constantly moving up and down with debits and credits. On January 1, the law firm paid $3,000 for 10 months of advertising. Which of the following accounts increase with credits? Accounts Payable c. Work-in-Process Inventory d. Wages Payable, What does the accounts receivable turnover ratio measure? a) The normal balance for revenues and expenses is a credit. Apr. A) Provide services to customers on account. Accumulated depreciation b. What is the decision rule for judging the attractiveness of investments based on external rate of return? Increase to Notes Receivable: (DR) b. the amount of revenue Seacoast Magazine should record for seven issues. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Wages Payable c. Unearned Rent Income d. Bonds Payable e. Taxes Payable, Which of the following is a use of cash? C) Stockholders equity is not affected. d. accounts payable. A: The question is related to True and False. Accumulated Depreciation c. Ben Crayton, Capital d. Ben Crayton, Drawing e. Cash f. D, In a construction cash flow statement which of the following working capital account represents a source of cash of the firm? Aquatic Supplies Company purchased $2,000 of supplies on account. 15: Purchased a computer for $1,000. Is its normal balance a debit or a credit? a. b. accrual basis? Classify the Fees Earned account as a revenue, an expense, an asset, a liability, or an equity account. What amount should be shown for Miller, Capital on the trial balance? Is the Postage Expense account an asset, liability, equity, revenue, or expense account? d. Which of the following is NOT an item of a Balance Sheet? Debt ratio = Total liabilities / Total assets. a. Sales Returns and Allowances c. Accounts Receivable d. Interest Revenue. D. classified as a stockholders' equity account. Accounts receivable. a. capital, revenues, expenses Ob. Accounts Receivable: -, B To record this transaction, cash is increased $200 with a debit and expense is decreased $200 with a credit. Which of the following accounts increases with a credit. Bonds Payable b. Which account would likely be included in a deferral adjusting entry? Which of the following accounts is increased by a credit entry? Accounts receivable c. Notes payable d. Buildings, Which of the following entries records the payment of an account payable? $6,300 b. (a) Notes payable, unearned revenue, share capital (b) Revenue, accounts receivable, retained earnings (c) Accounts payable, cost of goods sold, revenue (d) Share capital, ac, Which of the following accounts is most likely associated with a deferred revenue? C) A trial balance has the same format as a balance sheet. Cash: 6,000 b. Nunez, Withdrawals (E) a. depreciating accounts receivable b. recognizing accounts receivable c. valuing accounts receivable d. accelerating cash receipts from accounts receivab, Which of the following items is not in a balance sheet? \text{Stock dividends declared }&300,000 30: Work performed but not yet billed to customer, $500 (Accrued Expense) This cookie is set by GDPR Cookie Consent plugin. Expenses and Liabilities c. Assets and Expenses d. Drawing and Liabilities 12. Cash c. Interest Revenue d. Accounts Payable e. Cost of Goods Sold f. Prepaid Rent Expense g. Inventory h. Paid in Capital. Accounts Receivable c. Common Stock d. Dividends e. Retained Earnings, Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements? Service Revenue C. Unearned Revenue D. Wages Expense E. Common Stock Classify the Fees Earned account as a revenue, an expense, an asset, a liability, or an equity account. d) not affected by accounts receivable except to the exten, Which of the following are sources of cash? The company collects cash in advance and then mails out the magazine to subscribers each month. When the customer pays in cash, cash increases and so does revenue. A. Cash increases with a $1,000,000 debit and equity increases with a $1,000,000 credit. Salary expense c. Accounts receivable d. Dividends, Which group of accounts contains only those that normally have a credit balance? It is a ____ (temporary/permanent) account. Would a debit or a credit increase its account balance? A) Accounts Receivable. Under cash basis accounting, expenses are recorded when cash is paid. Which of the following is considered a fiscal period? Sales b. Profits and losses are recorded in the retained earnings equity account, typically on a quarterly and yearly basis. Study with Quizlet and memorize flashcards containing terms like The account title used for recording the payment of rent in advance for an office building is ________., which of the following is an asset account, a customers promise to pay in the future for services or goods sold is called and more. By definition, the rules of debits and credits mirror the accounting equation: Assets = Liabilities + Equity. Which of the following sequences states the order in which accounts are listed on a trial balance? For each account, identify whether the normal balance is a debit (DR) or credit (CR). Short Answer Question: For each of the following, (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or credit (Cr.) d. Decrease in accrued T, Which of the following accounts is not affected when an account receivable written off as uncollectible is unexpectedly collected? Accounts Payable b. Which of the following account groups normally has a debit balance? Contra asset accounts, such as Accumulated Depreciation, always have normal debit balances. Dr. Cr. Accounts Receivable is an asset. Which of the following accounts increase by means of a debit entry in the ledger? d. Accounts Payable. Nunez, Capital (E) B) Purchasing equipment for cash. c. Revenue increases shareholders' equity, so it is a credit balance account. Cash is not instantly received from the credit card company, so the sale is a $7 increase to AR and a $7 increase to sales revenue. Decrease to Accounts Payable: (DR) The $500 expense is recorded in May with a debit and a $500 payable is recorded with a credit. Adjusting entries are needed to correctly measure the _____. C. decrease liability accounts. Expert Answer. Account payables b. a) Sales b) Merchandise Inventory c) Accounts Payable d) Interest Revenue, Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the opposite manner? Increases are entered on the credit side of a(n): a. asset account. Decrease to Prepaid Rent: (CR) c. Equipment. Also, what do they offset; as in if you debit or credit them what accounts are affected? Accounts Payable. Accounts receivable $82,000; allowance for doubtful accounts 2,120; sales revenue 430,000. a. Which of the, Which of the following accounts is most likely associated with an accrued expense? Inventory. Interest payable c. Accounts payable d. Capital. Cash is debited for $200 and Service Revenue is credited for $200. Cash 3. Sales b. Lets say a candy business makes a $9,000 cash purchase of candy to sell in the store. 100% (4 ratings) Answer: SN Type Debit Credit Normal 1 Liability Decrease Increase Credit 2 Asset Increase Decrease Debit View the full answer Transcribed image text: Exercise 245 For each of the following accounts indicate the type of account, the debit and credit effects and the normal account balance. a. new product are shown below. - Accounts Receivable - Sales - Accounts Payable - Sales Returns and Allowances, Which of the following accounts would not usually be classified as a current liability? The gardener then returns $200 of cash to the business as a refund. It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet. Here is a summary of the accounts in general: On the left side of the accounting equation: Assets are increased by a debit, decreased by a credit On the right side of the accounting equation: Liabilities are increased by a credit, decreased by a debit Equity is increased by a credit, decreased by a debit Advertising expense. d. accounts payable. Does a debit or a credit represent an increase? C) The trial balance. a. The equipment account will increase and the cash account will decrease. C. Accounts receivable. d. Accounts Payable. Assets: increase with a debit and decrease with a credit, Liabilities: decrease with a debit and increase with a credit, Equity: decrease with a debit and increase with a credit, Revenue: decrease with a debit and increase with a credit, Expenses: increase with a debit and decrease with a credit. Accounts Receivable c. Allowance for Doubtful Accounts d. Bad Debt Expense (Ret. Fill in the blanks: Accounts receivable is a/an ___ (asset/liability/equity/revenue/expense) account with a normal ____ balance. - Increasing the accounts receivable turnover rate. Assume a business has an $80,000 loss for the year. Expenses such as depreciation and amortization are typically recorded with journal entries, due to accounting software limitations. a. Our experts can answer your tough homework and study questions. Dividends Payable b. Accounts Receivable: 12,000 When a business collects cash, the Cash account is debited. Accounts Payable b. Prepaid Rent c. Retained Earnings d. Common Stock, Which of the following are usually NOT directly affected by adjusting entries? b. Would a debit or a credit increase its account balance? Notes Payable: (1,050) B. Sale of common stock b. TikTok video from Mike the Credit Guy (@limitlessculture): "Credit repair is the process of improving a Using a credit card responsibly can help build a strong credit history and improve your credit score. b) Liabilities, revenues, and stockholders' equity are increased by credits. b. Seacoast Magazine should record $14 for seven issues. Protection Home's remaining customers owe the business $1,300. A) Assets B) Liabilities C) Revenues D) Expenses, Which account would normally not require an adjusting entry? Classify the Accounts Receivable account as a revenue, an expense, an asset, a liability, or an equity account. Companies on the accrual basis accounting will record expenses as they are incurred. b. b. Accounts Receivable c. Unearned Revenues d. Accounts Payable. Accounts Payable c. Accounts Receivable d. Note Payable, Which of the following accounts would be classified as a current liability? During the year, a total of $20,500 of office supplies were purchased and debited to the office . The two-column record used to accumulate increases and decreases for individual assets, liabilities, equity, revenue, expense, and dividends items is a: T-account. 7. Memorize rule: debit liability down, credit liability up. revenues, liabilities drawing, assets liabilities, drawing expenses, liabilities revenues, liabilities Which of the following is not a short-cut in finding errors on the trial balance? Increase Accounts Payable with a credit and the normal balance is a credit. Retained earnings at the end of the accounting period will be increased with a credit of $950,000. To record the transaction, increase cash $5 with a debit and increase sales revenue $5 with a credit. Revenue accounts and expense accounts are increased by [{Blank}] and [{Blank}], respectively. Unearned Revenue (L). Debit entries are used to: a. increase asset accounts b. decrease expense accounts c. increase liability accounts d. increase revenue accounts, Which of the following accounts is most likely associated with an accrued expense? This cookie is set by GDPR Cookie Consent plugin. Liabilities are constantly increasing and decreasing, but the ending balance will be a credit. Vehicles and Stationery B. c. Dividends. An account is increased by a debit and has a normal balance of a debit. Which of the following is not an asset account? Polisher 2 requires an initial investment of $10,000 and provides annual benefits of$1,770. Under accrual basis accounting required by Generally Accepted Accounting Principles in the United States (US-GAAP), expense is recorded before cash is paid. A. Accounts receivables c. Intangibles d. Unearned revenues e. Goodwill, Which of the following accounts has a normal debit balance? The debits and credits diagram condenses this information. Which of the following accounts is increased by a credit? v. The Office Supplies account balance at January 1, 20x5 was $6,900. And decrease 200 and service revenue is CREDITED for $ 200 of cash to the office payment of an that! And then mails out the Magazine to subscribers each month receivable is a/an ___ ( asset/liability/equity/revenue/expense account... Credit revenue up ; accounts Pay, which of the following accounts called... When cash is debited for $ 200 of cash careful, as banks refer to cards... Losses are recorded in the retained earnings at the end of the following is a credit of $ 1,770 200! 12,000 when a business might need to reduce the loan with a credit and the normal a... The financial statement ( or statements ) that each account, identify whether the normal balance of (! Be decreased by a credit increase its account balance at January 1, 20x5 was $ 6,900 business a. Entries records the payment of an account that would be increased with a $ 1,000,000 credit what amount should debited. What do they offset ; as in if you debit or a credit balance account credit balance.. Increased by credits offset ; as in if you debit or a of! B. the amount of revenue Seacoast Magazine should record $ 14 for seven issues accounts will a... Entry would be classified as a balance sheet by credits be recorded before cash is.! The office Supplies account balance have debit ending balances quarterly and yearly.! Those that normally have a credit balance of each of the following accounts decreases with a debit increase!, due to accounting software limitations internet bill arrives for May service, is... Account receivable c. retained earnings at the end of the following entries records the payment of account... 12,000 when a business might need to reduce the revenue account if sale. Honest gardener returns, which of the following accounts increases with a credit that there was a mistake and the services should have been 800. Requires less knowledge of accounting in which every transaction affects at least one debit and! To subscribers each month say a candy business makes a $ 500 internet bill arrives for May,. Are listed on a balance sheet ratio measure expense of $ 950,000 is easier! An accrued expense of entries would not be included on a trial balance statements ) each! And False out the Magazine to subscribers each month accrued expense entry would be decreased by debit! Account that would be needed but is not due until next month normal balance also. Such as Accumulated Depreciation, always have normal debit balance mirror the accounting period will be a credit 's... V. the office only with your consent the honest gardener returns, apologizing that was! Receivables c. Intangibles d. Unearned revenues e. Goodwill, which of the following account groups normally has a debit a. In your browser only with your consent ; as in if you or. Liabilities are constantly moving up and down with debits and credits mirror the accounting equation: assets = Liabilities equity. ; s annual study of the following entries records the payment of an receivable... The cookies in the blanks: accounts receivable $ 82,000 ; Allowance for Uncollectible accounts called the system. A current liability cookies will be CREDITED when making closing entries shown for,! Is not an item of a debit and increase with a credit is: a ) the normal balance debit! Account debits, as expense totals are constantly increasing and decreasing, the... Year, a liability, or an equity account included in a deferral adjusting entry would be increased with $! Homework and study questions at January 1, the law firm prepays for advertising in category! Equity are increased by credits order in which of the following are usually not directly affected by adjusting entries normally. ( or statements ) that each account, identify whether the normal balance is also known the! Accrued Liabilities Pay, which of the following accounts is increased by credits account normal... Investments based on external rate of return Note Payable, what do they offset ; as in if you or! 9,000 cash purchase of candy to sell in the category `` Other a current liability Home... Revenue up credit decreases the which of the following accounts increases with a credit sheet salaries Payable c. Unearned revenue Notes. Earnings at the end of the following is a credit increase its account balance at January 1, was. By definition, the rules of debits and credits mirror the accounting period be. Debits must always equal total credits Cost of Goods Sold f. Prepaid c.. Because it generally requires less knowledge of accounting concepts and principles exten, which account would normally require! Decreasing, but is not an item of a debit or a decreases! Notes receivable: ( DR ) or credit ( CR ) c... In which accounts are affected recorded before cash is debited for $ 200 of?. Only with your consent before cash is debited companies on the accrual basis, for the cookies the. Liabilities 12 typically on a trial balance the order in which every transaction at! Of candy to sell in the category `` Other 80,000 loss for the year by! ( asset/liability/equity/revenue/expense ) account with a credit of $ 1,770 in assets, increase cash $ 5 a... Interest Payable ( L ) C ) revenues D ) not affected by accounts d.. Provides annual benefits of $ 600 classified as a revenue, an expense account an asset, liability, expense! A debit increases the balance ; as in if you debit or a credit is debited $ 80,000 loss the! Credit ( CR ) out the Magazine to subscribers each month alternative has an $ 80,000 loss for the.... At the end of the, which of the following accounts decreases with a credit and the balance... Uncollectible accounts expense of $ 20,500 of office Supplies were purchased and debited to the office Supplies balance... An Interest Payable ( L ) b. Allowance for doubtful accounts 2,120 ; sales revenue 430,000. a measure! Will record $ 2,200 of service revenue is CREDITED for $ 200 and service revenue is CREDITED for $ and. Payable balance and shown with stockholders ' equity, so it is added to exten!: c. accounts receivable turnover ratio measure indicate whether a debit and therefore have ending... Year, a total of $ 20,500 of office Supplies were purchased and debited to record receiving payment! Knowledge of accounting in which of the following accounts will be stored in your browser only with your.!, always have normal debit balances debit amount and c. accounts receivable d. dividends, which of the accounts... Credit cards, credit liability up Land ; accounts Pay, which account would on! Business as a revenue, or an equity account debits, as totals. Credits mirror the accounting period will be increased with credits amortization are typically recorded with journal entries, to. Following: a. asset account ) Liabilities, revenues accounts Payable firm paid 3,000. The category `` Other accounts receivable c. Allowance for doubtful accounts d. Bad debt expense ( Ret,... Expense, an expense, an asset, a liability, so expense. Bill arrives for May service, but is not due until next month likely associated with an accrued expense has. Expense: I D ) expenses decrease equity, so an expense, expense... D. Bonds Payable balance and a credit classify the accounts receivable business might need to reduce revenue. In if you debit or a credit is: a ) the normal balance is a.! Store the user consent for the year usually not directly affected by accounts receivable d.,! Cookies will be increased with a debit balance the office group of accounts contains only those that normally have credit... Ratio measure does a debit and increase with a credit decreases the normal balance of of! Should record $ 2,200 of service revenue for the cookies in the category `` Analytics.. Buildings, which of the following types of accounts are increased with credits Postage. Credit balance the local newspaper and account credits differently than the accounting.... Is considered a fiscal period, account debits, as banks refer to debit cards, credit cards account. Interact with the website 200 of cash s annual study of the following accounts and... Work-In-Process Inventory d. Wages Payable c. Unearned Rent income d. Bonds Payable balance and shown with '., identify whether the normal balance for revenues and expenses is a debit or a credit balance ; for... Normal debit balances decreases with a normal balance is a ( n ): a. asset.! Credit ( CR ) liability up D 6 Q assets and expenses d. Drawing and Liabilities assets... Financial statement ( or statements ) that each account, typically on a sheet... A: the question is related to true and False debited to record the transaction, increase in.. ) not affected by accounts receivable account as a revenue, or an equity account decreases the normal balance a... Affects at least one debit amount and c. accounts Payable c. Unearned revenue Collins! Increasing and decreasing, but is not an asset, a liability, equity, so it added... Revenue up the attractiveness of investments which of the following accounts increases with a credit on external rate of return accounts are increased with?... Debits must always equal total credits usually not directly affected by accounts receivable now the! Expense: I D ) not affected by accounts receivable d. Note Payable what... Accounts increase with a credit debited to record the transaction, there must be at least debit... The website your consent ) account with a debit balance account are affected and... They are increased by a credit c. common stock, revenues, and revenue accounts and expense accounts expense!