Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 4)
Which of the following are examples of transactions that would be recorded as credits in a business?
Sale of goods
Cash received from customers
Purchase of equipment for cash
Payment of salaries
Explanation
Credits increase liabilities, equity, or revenues. Sales of goods generate revenue (credit), and cash received increases assets (debit), which is offset by an increase in a liability or equity (credit).
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