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

Question

Quizplus · Accepted Answer

Increases in revenues and liabilities are recorded by credits. In accounting, credits represent increases in these accounts whereas debits represent decreases. For example, if a company receives payment from a customer for a sale made on credit, the revenue account would be credited to reflect an increase in revenue. Similarly, if a company takes out a loan from a bank, the liability account would be credited to reflect an increase in the amount owed to the bank.

In Which of the Following Types of Accounts Are Increases