Asked by Justin Maynes on Apr 27, 2024
Verified
Which of the following groups of accounts increase with a credit?
A) common stock, revenues, expenses
B) assets, common stock, revenues
C) liabilities, common stock, revenues
D) none of these
Common Stock
Common Stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.
Revenues
The total income generated from normal business operations and other activities, such as the sale of goods or services.
Credit
An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is also used in banking to denote a positive balance.
- Ascertain the accounts that are expanded through debits and those enhanced by credits.
Verified Answer
JM
Jairo MariscalApr 30, 2024
Final Answer :
C
Explanation :
Liabilities, like accounts payable and loans payable, increase with a credit. Common stock and revenues increase with a debit, and expenses decrease with a credit. Assets may increase or decrease with either a debit or credit, depending on the type of account.
Learning Objectives
- Ascertain the accounts that are expanded through debits and those enhanced by credits.