Final answer:
A credit to Cash decreases the company's assets since cash is an asset and reducing it will lower the total assets on the balance sheet. Thus, the correct option is C.
Step-by-step explanation:
A credit to Cash will decrease assets. Cash is an asset on a company's balance sheet. When you credit the cash account, you are reducing the amount of cash the company has, which decreases overall assets.
This can be visualized in the accounting equation, where Assets = Liabilities + Stockholders' Equity. A reduction in cash, which is on the asset side of the equation, will necessitate a corresponding decrease on the right side of the equation, which can be either through an increase in liabilities or a decrease in stockholders' equity depending on the transaction.
However, since the original question does not indicate that liabilities are being increased, the answer here is that a credit to cash will decrease assets. Thus, the correct option is C.