Question

5. Which of the following statements is true about credits?

a) Credits show an increase in what a company owns or a decrease in what it owes.
b) A credit to an asset account shows a decrease.
c) A credit to a liability account shows an increase.
d) Credits show a decrease in what a company owns or an increase in what it owes.

Answer 1

Answer:

c) A credit to a liability account shows an increase.