Which owner's equity accounts follows the same debit and credit rules as liabilities?

• A. Capital accounts only
• B. Drawing accounts only
• C. Revenue accounts only
• D. All owner's equity accounts

Answer: (C)

The main idea is that increases to liabilities are credits, and the same directional rule applies to the parts of owner's equity that come from income. Revenue accounts increase with credits and decrease with debits, which mirrors how liabilities behave in terms of the debit/credit direction. Drawings, by contrast, increase with debits, so they don’t follow the same pattern, and capital accounts, while they also increase on the credit side, are not the income component being discussed here. Because revenue represents earnings that add to owner’s equity and follow the same credit-increase rule, revenue accounts are the owner’s equity accounts that match the same debit/credit rules as liabilities.