176k views
4 votes
A credit is used to record a decrease in which of the following accounts?

A. Cash.
B. Revenue.
C. Accounts Payable.
D. Common Stock.

User Muradm
by
7.8k points

1 Answer

3 votes

Final answer:

A credit is used to record a decrease in the Accounts Payable account.

Step-by-step explanation:

A credit is used to record a decrease in the C. Accounts Payable account.

When a credit is made to an account, it means that the account is being decreased. In the case of Accounts Payable, a credit entry is made to decrease the amount owed to suppliers or creditors.

For example, let's say a company made a payment to a supplier to settle an outstanding invoice. This payment would be recorded as a credit to the Accounts Payable account, decreasing the amount owed to the supplier.

User Morag Hughson
by
7.3k points