A Credit Entry

question 115

Multiple Choice

A credit entry:

• A) Increases asset and expense accounts, and decreases liability, owner's capital, and revenue accounts.
• B) Is always a decrease in an account.
• C) Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts.
• D) Is recorded on the left side of a T-account.
• E) Is always an increase in an account.

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Definitions:

Commercial Insurance

is a type of insurance designed to protect businesses from losses due to events that may occur during the normal course of business, such as property damage or liability claims.

Business Risk

The potential for losses or less-than-expected returns stemming from the economic, industry, or company-specific factors.

Property Insurance

Insurance that protects property from loss or damages.

Loss Or Damage

Refers to the negative impact, destruction, or impairment of value, function, or condition of property or goods.