A credit to a liability account
A)indicates an increase in the amount owed to creditors.
B)indicates a decrease in the amount owed to creditors.
C)will always increase shareholders' equity.
D)must be accompanied by a debit to an asset account.

Question

Quizplus · Accepted Answer

A credit to a liability account indicates an increase in the amount owed to creditors. This is because in accounting, credits increase liability accounts, while debits decrease them.

A Credit to a Liability Account