Which of the following is defined by the DEAD mnemonic?

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Study for the AAT Level 2 Introduction to Bookkeeping Test. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively for your exam!

Multiple Choice

Which of the following is defined by the DEAD mnemonic?

Explanation:
DEAD helps you remember which kinds of accounts increase on the debit side: Expenses, Assets, and Drawings. Debtors are a form of asset (they are money owed to the business by customers). Since asset accounts increase with a debit, Debtors fit the pattern described by DEAD. For example, when a sale is made on credit, Debtors increase (debited) while Revenue is credited. So among the options, Debtors is the example that aligns with what the DEAD mnemonic explains about how certain accounts behave on the debit side.

DEAD helps you remember which kinds of accounts increase on the debit side: Expenses, Assets, and Drawings. Debtors are a form of asset (they are money owed to the business by customers). Since asset accounts increase with a debit, Debtors fit the pattern described by DEAD. For example, when a sale is made on credit, Debtors increase (debited) while Revenue is credited. So among the options, Debtors is the example that aligns with what the DEAD mnemonic explains about how certain accounts behave on the debit side.

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