Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 15 - No. 8)

Which of the following statements is true about a 'credit' in the accounting system?
A credit always decreases the balance of an asset account.
A credit always increases the balance of an asset account.
A credit always decreases the balance of a liability account.
A credit always increases the balance of an expense account.

Explanation

A credit entry decreases the balance of an asset account.

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