When recording transactions, what is increased by debits and decreased by credits?

Liabilities

Common stocks

Expenses

Revenues

1 answer

In accounting, the following relationships apply:

  • Liabilities: Increased by credits and decreased by debits.
  • Common Stocks: Increased by credits and decreased by debits.
  • Expenses: Increased by debits and decreased by credits.
  • Revenues: Increased by credits and decreased by debits.

Therefore, the correct answer to your question, "What is increased by debits and decreased by credits?" is Expenses.