A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.

Question

Quizplus · Accepted Answer

This is because every transaction must be balanced, meaning that debits must equal credits. In the case of a transaction that credits an asset and credits a liability, the credits must be equal. Therefore, one or more other accounts must be debited in order to balance the transaction.

A Transaction That Credits an Asset Account and Credits a Liability