Question

which of the following statements is correct?
accounts receivable increases with a credit entry.
cash increases with a debit entry.
accounts receivable decreases with a debit entry.
cash decreases with a debit entry.
i dont know yet

Explanation:

To determine the correct statement, we analyze the rules of debit and credit in accounting:

• Accounts Receivable: It is an asset account. Asset accounts increase with debit entries and decrease with credit entries. So, "Accounts Receivable increases with a credit entry" and "Accounts Receivable decreases with a debit entry" are incorrect.
• Cash: It is also an asset account. Asset accounts increase with debit entries and decrease with credit entries. So, "Cash increases with a debit entry" is correct, and "Cash decreases with a debit entry" is incorrect.

Answer:

B. Cash increases with a debit entry.