The company pays its telephone bill for the month. What statement is true?

Question

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.”

Answer 1

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.