Which of the following is true?
A)Credits increase both revenues and expenses.
B)Credits increase expenses and decrease revenues.
C)Credits increase revenues and decrease expenses.
D)Credits decrease both revenues and expenses.

Question

Quizplus · Accepted Answer

In accounting, the normal balance of revenue accounts is a credit balance, which means that an increase in revenue is recorded as a credit. On the other hand, the normal balance of expense accounts is a debit balance, which means that an increase in expense is recorded as a debit. Therefore, a credit entry will increase revenues and decrease expenses.

Which of the Following Is True