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

Question

Quizplus · Accepted Answer

A credit is used to record a decrease in an asset account. This is because a credit represents a decrease in the left side (debit side) of an account and an increase in the right side (credit side) of an account. Since assets have a debit balance, a credit entry will decrease the balance.

A Business Uses a Credit to Record