A business uses a credit to record:
A)An increase in an expense account.
B)A decrease in an asset account.
C)A decrease in an unearned revenue account.
D)A decrease in a revenue account.
E)A decrease in a capital account.

Question

Quizplus · Accepted Answer

A credit is used to record a decrease in an asset account. This is because credits represent a decrease in the accounting equation’s left-hand side (assets, expenses, and drawings) and an increase in the right-hand side (liabilities, revenue, and equity).

A Business Uses a Credit to Record