Question

What entry should you make in an asset account to decrease an asset?

Select one:

a. Debit

b. Credit

What entry should you make in a liability account to decrease a liability?

Select one:

a. Credit

b. Debit

What entry should you make in the capital account to decrease the capital?

Select one:

a. Credit

b. Debit

What entry should you make in an asset account to decrease an asset?

Select one:

a. Debit

b. Credit

A business pays a supplier 100 in cash, which account does it credit?

Select one:

a. Cash

b. Accounts payable

A business buys new plant and machinery from a supplier who gives 30 days credit. Which account should the business debit?

Select one:

a. Fixed assets

b. Cash

Answer 1

What entry should you make in an asset account to decrease an asset?

Ans- Credit

Reason:- Credit reduces the amount of asset

What entry should you make in a liability account to decrease a liability?

Ans- Debit

Reason:- Debit reduces the liability

What entry should you make in the capital account to decrease the capital?

Ans:- Debit

Reason- Debit reduces the capital account

What entry should you make in an asset account to decrease an asset?

Ans:- Credit because asset have debit balance

A business pays a supplier 100 in cash, which account does it credit?

Ans:- Cash acc credit

Logic:-

Entry is

Accounts payable Dr 100

To Cash 100

A business buys new plant and machinery from a supplier who gives 30 days credit. Which account should the business debit?

Ans:- Fixed asset

Logic:-

Fixed asset Ac Dr

   To Supplier account