A decrease in liability account is recorded by a debit entry.
Question
A decrease in liability account is recorded by a debit entry.
Solution
Yes, that's correct. In accounting, a decrease in a liability account is indeed recorded by a debit entry. This is because in the double-entry bookkeeping system, liabilities are increased by credits and decreased by debits. So, if a company were to pay off a debt, for example, it would debit (decrease) its liabilities.
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