Which Type of Account Is Credited When a Company Records

question 110

Multiple Choice

Which type of account is credited when a company records a debt?

• A) expense
• B) retained earnings
• C) liability
• D) asset

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Definitions:

Honey

A sweet, viscous food substance made by bees from the nectar of flowers.

Expectation

The anticipation or belief regarding the future performance of the economy, markets, or individual financial assets.

CDs

Certificates of Deposit, a financial product offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period.

Price Increase

A rise in the cost of goods or services.