INTRODUCTION TO ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A debit ____ your account balance. A credit to your account ____ your account balance.
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increases, decreases
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lowers, increases
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freezes, unfreezes
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None of the above
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Explanation:
Detailed explanation-1: -In effect, a debit increases an expense account in the income statement, and a credit decreases it. Liabilities, revenues, and equity accounts have natural credit balances. If a debit is applied to any of these accounts, the account balance has decreased.
Detailed explanation-2: -When the cash is deposited to the bank account, two things also change, on the bank side: the bank records an increase in its cash account (debit) and records an increase in its liability to the customer by recording a credit in the customer’s account (which is not cash).
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