Question

Credits are used to record:___________

Answer 1

Answer:

The correct answer is letter "B": decreases to assets and expenses and increases to liabilities, revenues, and stockholders' equity.

Explanation:

When it comes to accounting book-keeping, a credit is an entry that increases liabilities (amounts owed to third parties) and equities (assets minus liabilities) in their corresponding accounts or decreases assets (resources owned by the company) and expenses (costs of the business operations) accounts.