A Credit Is Used to Record

question 82

Multiple Choice

A credit is used to record:

• A)An increase in an expense account.
• B)An increase in an asset account.
• C)An increase in an unearned revenue account.
• D)A decrease in a revenue account.
• E)A decrease to retained earnings.

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Definitions:

Withdrawals

The act of taking money out of an account, fund, or similar financial vehicle.

Invest

To allocate money in the expectation of some benefit in the future, usually through the purchase of assets with the hope that they will increase in value.

Ordinary Annuity

Continuous uniform payouts effected at every period’s cessation over a stipulated time frame.

Compounded Quarterly

A method of calculating interest where the interest earned is added to the principal four times a year, leading to interest on interest.