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:

Secured Creditors

Creditors who have a legal interest in a debtor's property as collateral for a debt, giving them priority over unsecured creditors in claim payments.

Right of Surety

involves the right of a guarantor (surety) to be reimbursed by the principal debtor for any payments the surety made on the debtor's behalf, under a suretyship arrangement.

Co-sureties

Individuals or entities that jointly commit to paying back a debt or fulfilling an obligation if the primary party fails to do so.

Guarantor

A person or entity that agrees to be responsible for another's debt or obligations if the original party fails to meet their responsibilities.