In Which of the Following Types of Accounts Are Decreases

question 129

Multiple Choice

In which of the following types of accounts are decreases recorded by credits?

• A) liabilities
• B) owner's equity
• C) assets
• D) revenues

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Definitions:

Dividends Payable

A liability on a company's balance sheet that indicates the amount of dividends it owes to shareholders, to be paid out in the future.

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Generally speaking, activities that affect current assets, current liabilities, or net income.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered cash equivalents.