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

Question

Revenues are decreased with a debit.

Expenses decrease with a credit to “Telephone expense.”

Expenses increase with a debit to “Telephone expense.”

The owner's equity decreases with a debit.

Answer 1

The true statement among the options is:

Expenses increase with a debit to “Telephone expense.”

This is consistent with accounting principles, where expenses are recorded with debits, meaning when the company pays its telephone bill, the "Telephone expense" account will be debited to reflect the increase in expenses.