Asked by
Shandi Norwood
on Nov 14, 2024Verified
Credits
A) decrease both assets and liabilities.
B) decrease assets and increase liabilities.
C) increase both assets and liabilities.
D) increase assets and decrease liabilities.
Credits
Credits refer to a bookkeeping entry that increases a liability or equity account, or reduces an asset or expense account, reflecting the opposite side of a debit.
Assets
Assets are resources owned or controlled by a business, expected to bring future economic benefits.
Liabilities
Financial obligations or debts owed by a company to outside parties, including loans, accounts payable, and mortgages.
- Analyze the differential impacts of debits and credits on multiple account categories.
Verified Answer
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Learning Objectives
- Analyze the differential impacts of debits and credits on multiple account categories.