Which statement is true?

Which statement is true?

• A. Assets increase with a debit
• B. Assets increase with a credit
• C. Liabilities increase with a debit
• D. Stockholders' Equity increases with a debit

Answer: (A)

In double-entry accounting, asset accounts have a normal debit balance, so increases to assets are recorded on the debit side. This means when an asset grows—like receiving cash or adding inventory you debit the asset account to reflect the increase. Conversely, increases for liabilities and stockholders’ equity are recorded on the credit side because these accounts carry normal credit balances. So the statement that assets increase with a debit is correct, while assets increasing with a credit, liabilities increasing with a debit, or stockholders’ equity increasing with a debit contradicts these normal balance patterns. For quick context: debits raise assets and expenses; credits raise liabilities, equity, and revenues.

In double-entry accounting, asset accounts have a normal debit balance, so increases to assets are recorded on the debit side. This means when an asset grows—like receiving cash or adding inventory you debit the asset account to reflect the increase. Conversely, increases for liabilities and stockholders’ equity are recorded on the credit side because these accounts carry normal credit balances. So the statement that assets increase with a debit is correct, while assets increasing with a credit, liabilities increasing with a debit, or stockholders’ equity increasing with a debit contradicts these normal balance patterns. For quick context: debits raise assets and expenses; credits raise liabilities, equity, and revenues.