Consider the following accounts:

Utilities Expense
Accounts Payable
Service Revenue
Common Stock

How many of these accounts are increased with debits?

Question

Consider the following accounts:

Utilities Expense
Accounts Payable
Service Revenue
Common Stock

How many of these accounts are increased with debits?

BlackTom AI · Accepted Answer

The question asks how many of the listed accounts are increased by debits.
First, examine each account type to know how debits affect them.
Option 1: Utilities Expense — as an expense (an expiration of assets or incurrence of costs), debits increase expenses. Therefore, Utilities Expense is increased by a debit.
Option 2: Accounts Payable — this is a liability. Debits decrease liabilities, not increase them, so a debit would reduce Accounts Payable rather than increase it.
Option 3: Service Revenue — this is a revenue account. Revenues increase with credits, not debits, so a debit would not increase Service Revenue.
Option 4: Common Stock — this is an equity account. Equity increases with credits and decreases with debits, so a debit would not increase Common Stock.
Putting it together, only Utilities Expense is increased by a debit, while the other three accounts are not. Thus, the number of accounts increased by debits is one.

25/SP-ACC-220-1M3, ACC-220-103 Chapter Two Quiz

Consider the following accounts: Utilities Expense Accounts Payable Service Revenue Common Stock How many of these accounts are increased with debits?

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