Question

Which of the following accounts would be decreased by a credit entry?

Answer 1

An account that would be decreased by a credit entry is typically an asset or expense account. An example includes the cash account being credited when a business pays for imports, thus reducing its balance.

Step-by-step explanation:

An account that would be decreased by a credit entry is typically an asset or expense account in the field of accounting. This is due to the double-entry bookkeeping system where assets and expenses normally have debit balances. When these accounts are credited, their balances decrease. Conversely, liability, equity, and revenue accounts usually have credit balances, and they increase when credited.

For example, if a business pays for imports, it is spending money, which will reduce its cash account, an asset account. This transaction would be recorded as a debit to the expense (imports) and a credit to the cash account, thereby decreasing the cash account's balance.

It is important to understand how money flows affect accounts. As given in the reference, if more monies are flowing out of the country to pay for things like imports, it will make the current account of that country's balance of payments more negative or less positive.

Answer 2

A Bank account (if bad or good), A Welfare Account (If good, you will no longer receive services.) Card Bureau account can change due to unexpected reasons, can go down or go up.