Question

which of the following groups of accounts increases with debits?
○ a. supplies, common stock, supplies expense
○ b. cash, accounts payable, miscellaneous expense
○ c. accounts receivable, land, investments
○ d. wages expense, fees earned, land

Explanation:

To determine which group of accounts increases with debits, we recall the accounting rules:

• Assets (e.g., Cash, Supplies, Accounts Receivable, Land, Investments) and Expenses increase with debits.
• Liabilities, Equity (e.g., Common Stock), and Revenues (e.g., Fees Earned) increase with credits.

Let’s analyze each option:

• Option a: Supplies (asset, debit - ok), Common Stock (equity, credit - not ok), Supplies Expense (expense, debit - ok). Mixed, so incorrect.
• Option b: Cash (asset, debit - ok), Accounts Payable (liability, credit - not ok), Miscellaneous Expense (expense, debit - ok). Mixed, incorrect.
• Option c: Accounts Receivable (asset), Land (asset), Investments (asset). All assets, so they increase with debits. Correct.
• Option d: Wages Expense (expense, debit - ok), Fees Earned (revenue, credit - not ok), Land (asset, debit - ok). Mixed, incorrect.

Answer:

c. Accounts Receivable, Land, Investments