________ decrease assets and expenses and/or increase liabilities and/or equity
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A. B. C. D.C
The correct answer to this question is option C: Credit.
In accounting, a credit entry is used to record an increase in liabilities, equity or revenue, and a decrease in assets or expenses. On the other hand, a debit entry is used to record an increase in assets or expenses, and a decrease in liabilities, equity or revenue.
Therefore, if an entry results in decreasing assets and expenses or increasing liabilities and equity, a credit entry would be appropriate. For example, if a company borrows money from a bank, the cash received from the loan would be recorded as a debit entry (increase in assets), while the corresponding liability to the bank would be recorded as a credit entry (increase in liabilities).
In the case of decreasing assets, such as when recording depreciation expense or when an asset is sold, a credit entry is used to reflect the decrease in the asset's value. When a company pays off a debt, the liability is reduced by a debit entry, while the corresponding decrease in cash is recorded with a credit entry.
In summary, a credit entry can be used to decrease assets and expenses or increase liabilities and equity, making option C the correct answer.