In double-entry accounting, a credit entry can have different effects depending on the account it is applied to. Here are the effects of a credit entry:

1. Increase in Liabilities: When you credit a liability account, it increases. This is because liabilities are essentially what the business owes, and when you credit this account, it means the business owes more.

2. Decrease in Assets: When you credit an asset account, it decreases. This is because assets are what the business owns, and when you credit this account, it means the business owns less.

3. Decrease in Owner's Equity: When you credit an owner's equity account, it decreases. This is because owner's equity represents the owner's investment in the business, and when you credit this account, it means the owner's investment decreases.

So, a credit entry does not increase assets, it decreases them.

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In double-entry accounting, a credit entry can have different effects depending on the account it is applied to. Here are the effects of a credit entry:

1. Increase in Liabilities: When you credit a liability account, it increases. This is because liabilities are essentially what the business owes, and when you credit this account, it means the business owes more.

2. Decrease in Assets: When you credit an asset account, it decreases. This is because assets are what the business owns, and when you credit this account, it means the business owns less.

3. Decrease in Owner's Equity: When you credit an owner's equity account, it decreases. This is because owner's equity represents the owner's investment in the business, and when you credit this account, it means the owner's investment decreases.

So, a credit entry does not increase assets, it decreases them.

Knowee AI · Accepted Answer

In double-entry accounting, a credit entry can have different effects depending on the account it is applied to. Here are the effects of a credit entry:

1. Increase in Liabilities: When you credit a liability account, it increases. This is because liabilities are essentially what the business owes, and when you credit this account, it means the business owes more.

2. Decrease in Assets: When you credit an asset account, it decreases. This is because assets are what the business owns, and when you credit this account, it means the business owns less.

3. Decrease in Owner's Equity: When you credit an owner's equity account, it decreases. This is because owner's equity represents the owner's investment in the business, and when you credit this account, it means the owner's investment decreases.

So, a credit entry does not increase assets, it decreases them.

In double-entry accounting, what is the effect of a credit entry?(5 Points)Increase in assetsIncrease in liabilitiesDecrease in liabilitiesDecrease in owner's equity

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