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People also ask
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What accounts decrease with a credit?
Credits increase liability, equity, and revenue accounts. Credits decrease asset and expense accounts.
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Does a credit decrease a bank account?
Whether a debit or credit means an increase or decrease in an account depends on the account type. In traditional double-entry accounting, debits are entered on the left, and credits are entered on the right, like so: Asset accounts Debit Increase, Credit Decrease. Expense accounts Debit Increase, Credit Decrease.
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Which account is decreased by a credit entry?
A credit (or “CR” for short) is an accounting entry that decreases assets and increases liabilities. For example, when paying rent for your firm's office each month, you would enter a credit in your liability account. The credit entry typically goes on the right side of a journal.
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Which account would be decreased with a credit?
Credits increase liability, equity, and revenue accounts. Credits decrease asset and expense accounts.
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How do you respond to all credit goes to you?
You can respond with a gracious and humble reply like, "Thank you, I appreciate your kind words," or "I'm glad I could contribute to it."
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Which of the following accounts would be decreased with a credit?
Answer and Explanation: Cash possesses a current asset nature; thus, it has a debit balance which corresponds to a decrease with credit in accounting.
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