PRC-1 · Chapter 1 · Question 9 of 100
In the double-entry bookkeeping system, a credit entry will inherently result in an increase in which of the following types of accounts?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Liabilities and Equity
Explanation
According to the rules of double-entry, a credit entry represents an increase in liabilities, equity, or income. Conversely, debit entries represent increases in assets and expenses.
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