In which of the following types of accounts are increases recorded by credits?
A) revenues, liabilities
B) dividends, assets
C) liabilities, dividends
D) expenses, liabilities

Question

Quizplus · Accepted Answer

In the revenue account, increases are recorded by credits because revenues represent inflows of economic resources to the company. Liabilities, on the other hand, are obligations that the company owes to others, and increases in liabilities are recorded by debits (which decrease the company's resources). Dividends are distributions of profits to shareholders and are recorded by debits. Expenses are costs incurred to generate revenues and are recorded by debits.

In Which of the Following Types of Accounts Are Increases