Which of the following is an expense that is a debit to the seller?

In real estate transactions, debits represent amounts that are owed or expenses incurred by a party. In the case of the seller, accrued expenses owed into arrears are considered a debit because they are liabilities that the seller needs to settle at the time of closing.

When a property is sold, any expenses that have been incurred but not yet paid—such as property taxes or utility bills—must be accounted for in the closing statement. Since these expenses are the seller’s obligation—even if they have not yet been settled—they count as a debit to the seller. This is critical for ensuring that the buyer is not responsible for expenses that were incurred prior to their ownership.

Other options like prepaid property taxes represent amounts that the seller has already paid, thus serving as a credit to the seller. Appraisal fees can be either a debit or credit depending on who is paying for them, and closing costs can also be allocated to either party based on the agreement between them. However, any accrued expenses owed into arrears are clearly a liability for the seller that must be cleared before the transaction can be finalized, making them a definitive debit.