Common Stock increases with a credit and decreases with a debit.

Name: Common Stock increases with a credit and decreases with a debit.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Common Stock is a type of equity account which represents the common shareholders' ownership interest in a company. An increase in Common Stock is recorded as a credit, indicating that more equity has been raised through sale of shares. A decrease in Common Stock is recorded as a debit, which could be due to share repurchases or dividends paid.

Common Stock Increases with a Credit and Decreases with a Debit