Question

Which of the following balances increase when their accounts are debited? (select all that apply - i.e. just one or as many as all of them) Rent revenue Prepaid rent A contra-asset account Inventory A contra-revenue account Accrued interest payable O A contra-expense account Cost of goods sold

Answer 1

Ans :prepaid rent account,Inventory account, contra revenue account and cost of goods sold account are the accounts which get increased when debited.

reasn is explained below and one in greeen shows account balances increased when debited and in red shows account balances decreased when debited

The accounts which will have usually  debit balance as their closing balance   will get increased if further debited and accounts which usually have credit balance as their closing balance will get decreased if further debited .

Explanation is as follows

S.no	Accounts	Decreased/Increased when Debited	Reason
1	Rent Revenue	Decreased	Rent Revenue is usually a income item shows credit balance , so when debited it decreases
2	Prepaid Rent	Increased	Prepaid rent is a current asset shows debit balance , so when debited it increases
3	A contra Asset Account	Decreased	A contra asset usually shows credit balance which is opposed to debit balance of normal asset account
4	Inventory	increased	Inventory is a current asset which usually shows debit balance so when debited further it increases
5	A contra Revenue Account	Increased	A contra revenue usually shows debit balance as opposed to revenue account shows credit balance and hence increased when further debited
6	Accrued nterest payable	Decreased	Accrued Interest payable is a current liability shows credit balance so when debited it decreases
7	A contra Expense account	Decreased	A contra expense ussally shows credit balance as opposed to expense which generally shows debit balance and hence decreased when further debited
8	cost of goods sold	Increased	Cost of Goods Sold (COGS) is the cost of a product to a distributor, manufacturer or retailer. Sales revenue less cost of goods sold is a business's gross profit. Cost of goods sold is treated an expense in accounting and it can be found on a financial report called an income statement