Which of the following statements concerning the debit-credit feature of the accounting model is correct?
Group of answer choices
Debits are entered on the right and credits are entered on the left.
A liability account should be credited upon payment of an account payable.
A debit entry will decrease a liability account and increase an asset account.
Shares sold to investors increases shareholders' equity which is recorded as a debit.
The correct statement concerning the debit-credit feature of the accounting model is:
A debit entry will decrease a liability account and increase an asset account.
In the double-entry accounting system, debits typically increase asset accounts and decrease liability accounts, while credits have the opposite effect. When a liability account, such as an account payable, is paid, it is credited (decreased), and an asset account, like cash or bank存款, is debited (increased).
