Which type of account is credited when a company records a debt?

Name: Which type of account is credited when a company records a debt?
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Question

Quizplus · Accepted Answer

When a company records a debt, it means that they owe money to someone. This creates a liability on the company's balance sheet. Therefore, the type of account that is credited in this case is a liability account. Assets and expenses are debited, while retained earnings are not affected by this transaction.

Which Type of Account Is Credited When a Company Records