A debit increases the balance in all of the following accounts, except __________.
options:
cash
withdrawals
expenses
accounts payable
An - cash
To find the answer to this question, we need to understand the concept of debits and how they affect different types of accounts.
In accounting, there are two types of accounts: asset accounts and liability accounts. Asset accounts include accounts like cash, accounts receivable, and inventory, while liability accounts include accounts like accounts payable, loans payable, and wages payable.
Now, let's look at the given options:
1. Cash: When a debit is recorded in the cash account, it means that cash has been increased. Therefore, a debit increases the balance in the cash account.
2. Withdrawals: Withdrawals account is used to record any money taken out of a business by the owner for personal use. When a debit is recorded in the withdrawals account, it means that withdrawals have increased. Therefore, a debit increases the balance in the withdrawals account.
3. Expenses: Expense accounts are used to record the costs incurred by a business in its operations. When a debit is recorded in an expense account, it means that the expense has increased. Therefore, a debit increases the balance in an expense account.
4. Accounts Payable: Accounts payable is a liability account that represents the amount of money a business owes to its suppliers or vendors. When a debit is recorded in the accounts payable account, it means that the amount owed has increased. Therefore, a debit increases the balance in the accounts payable account.
Based on this analysis, the answer to the question is "expenses." A debit does not increase the balance in the expenses account. Instead, it increases the balance in the expenses account.