Which of the following types of accounts are increased by credits?

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Multiple Choice

Which of the following types of accounts are increased by credits?

Explanation:
Credit entries increase accounts that carry a credit balance. Liability accounts, owners' equity accounts, and revenue accounts normally have credit balances, so adding a credit raises their balances. In contrast, asset and expense accounts have debit balances, so credits would decrease them. Since the three categories listed are all increased by credits, the correct conclusion is that all of the above are increased by credits.

Credit entries increase accounts that carry a credit balance. Liability accounts, owners' equity accounts, and revenue accounts normally have credit balances, so adding a credit raises their balances. In contrast, asset and expense accounts have debit balances, so credits would decrease them. Since the three categories listed are all increased by credits, the correct conclusion is that all of the above are increased by credits.

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