QQuestionAccounting
QuestionAccounting
"A business uses a credit to record:
Multiple Choice
A decrease in an asset account.
An increase in an expense account.
A decrease in a revenue account.
A decrease in a liability account.
A decrease in an unearned revenue account."
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Answer
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Step 1: Analyze the given information and the choices.
The problem states that a business uses a credit to record a certain transaction. In accounting, credits and debits are used to record changes in financial accounts. Credits usually increase liability or equity accounts or decrease asset or expense accounts.
Step 2: Identify the type of account based on the credit.
As mentioned in Step 1, credits decrease asset or expense accounts. In this problem, we are looking for an account that is decreased when a credit is used.
Final Answer
A business uses a credit to record A) A decrease in an asset account.
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