A Credit Is Used to Record an Increase in All

question 185

Multiple Choice

A credit is used to record an increase in all of the following accounts except:

• A)Accounts Payable
• B)Service Revenue
• C)Unearned Revenue
• D)Wages Expense
• E)Common Stock

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Definitions:

Beginning Balance

The amount of money in an account at the start of a new accounting period.

Credit Side

The section of an account where increases in liabilities, income, and equity are recorded, as opposed to the debit side, which records increases in assets and expenses.

Normal Credit Balance

The usual balance side of an account that increases its value, typically used for liabilities, revenues, and equity accounts.

Withdrawals

Money taken out from a business by its owner(s) for personal use, reducing the owner's equity in the business.