Question
The company pays its telephone bill for the month. What statement is true?
Revenues are decreased with a debit.
The owner's equity decreases with a debit.
Expenses increase with a debit to “Telephone expense.”
Expenses decrease with a credit to “Telephone expense.”
Revenues are decreased with a debit.
The owner's equity decreases with a debit.
Expenses increase with a debit to “Telephone expense.”
Expenses decrease with a credit to “Telephone expense.”
Answers
GPT-4o mini
The true statement is:
**Expenses increase with a debit to "Telephone expense."**
When a company pays its telephone bill, it records the expense with a debit to the "Telephone expense" account, which increases the total expenses. The other statements are not accurate in the context provided.
**Expenses increase with a debit to "Telephone expense."**
When a company pays its telephone bill, it records the expense with a debit to the "Telephone expense" account, which increases the total expenses. The other statements are not accurate in the context provided.