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

Question

Quizplus · Accepted Answer

Credits are used to record increases in revenues and decreases in expenses. Therefore, option C is correct. Option A is incorrect because credits increase one account and decrease another account. Option B is incorrect because credits decrease expenses and increase liabilities. Option D is incorrect because credits do not decrease assets or liabilities.

Which of the Following Is True