A Credit Entry

question 58

Multiple Choice

A credit entry

• A)Increases asset and expense accounts, or decreases liability, equity, and revenue accounts.
• B)Decreases asset and expense accounts, or increases liability, equity, and revenue accounts.
• C)Increases the withdrawals account.
• D)Is recorded on the left side of a T-account.
• E)Decreases asset, expense and revenue accounts.

---

Definitions:

365-Day Year

A method of interest calculation that uses a full calendar year to determine the amount due.

Loan Period

The duration of time from the initiation to the full repayment of a loan.

Exact Simple Interest

A method of calculating interest that uses a base of 365 days per year, ensuring accuracy based on actual calendar days.

365-Day Year

A 365-day year is a calendar method used in finance that assumes all years have 365 days for the calculation of interest rates.