Which of the following statements regarding credit entries is true?
A)Credits decrease liability accounts.
B)Credits increase asset accounts.
C)Credits increase the common stock account.
D)Credits increase asset and common stock accounts,and decrease liability accounts.

Question

Quizplus · Accepted Answer

Debits increase asset accounts;credits decrease asset accounts.Debits decrease liability and stockholders' equity accounts;credits increase liability and stockholders' equity accounts.Common Stock,a stockholders' equity account,is increased with a credit.

Which of the Following Statements Regarding Credit Entries Is True