A debit may signify a (n)

A) decrease in asset accounts
B) decrease in liability accounts
C) increase in the capital account
D) decrease in the drawing account

Debit

A debit is a bookkeeping entry that leads to an increase in a company's assets or expenses or a reduction in its liabilities or equity on the balance sheet.

Asset Accounts

Accounts that appear on a balance sheet and represent tangible and intangible items owned by a business that have value.

Liability Accounts

These accounts record obligations or amounts owed by a business to creditors, which can include loans, accounts payable, mortgages, and other debts.