Certified Medical Administrative Assistants (CMAA) Practice Exam

In accounting, 'debit' primarily refers to an increase in expenses, which plays a critical role in the double-entry accounting system. When a debit is recorded, it results in the addition of amounts to expense accounts. This reflects that the business is incurring costs, which will ultimately affect the net income reported in the financial statements.

This understanding is essential for anyone managing financial accounts, as it illustrates how expenses are categorized and tracked. For example, if a medical facility increases its supply expenses, the accounting entry would involve debiting the expense account to reflect this change accurately. Recognizing this function of debiting helps in effectively managing the overall financial health of an organization.

While other options may involve various transactions within accounting, they do not capture the primary definition of debits in the context of increasing expenses. In particular, a decrease in liabilities, a loss of revenue, or an increase in income would correspond with different accounting actions and do not align with the fundamental role that debits play in financial record-keeping.