A Credit to a Liability Account

question 27

Multiple Choice

A credit to a liability account

• A) indicates an increase in the amount owed to creditors.
• B) indicates a decrease in the amount owed to creditors.
• C) is an error.
• D) must be accompanied by a debit to an asset account.

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Definitions:

Plaintiff Filed

indicates the act of a plaintiff submitting a complaint or lawsuit in court against a defendant, initiating legal action.

Plaintiff Entered

The initial stage in a legal action where the plaintiff officially submits a complaint against the defendant to the court.

Grammatical Correctness

The adherence to rules and conventions governing the appropriate use of a language in written and spoken forms.

Passive-Voice Sentence

A sentence construction where the subject of the sentence is acted upon, emphasizing the action and the object of the action rather than the subject performing the action.