Which of the Following Accounts Decreases with a Credit

question 15

Multiple Choice

Which of the following accounts decreases with a credit?

• A) Cash
• B) Capital
• C) Accounts payable
• D) Notes Payable

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Definitions:

Accounting Period

A specific time period at the end of which an organization prepares financial statements.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, illustrating how the revenues are transformed into net income or loss.

Financial Condition

A snapshot of a company's financial health, encompassing assets, liabilities, equity, and liquidity at a specific point in time.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.