In double-entry accounting, a credit entry will do which of the following?

• A. Increase liabilities, increase equity, or increase revenue (and decrease assets, expenses, or dividends/withdrawals).
• B. Always increase an account balance regardless of the type of account.
• C. Have the same effect as a debit on all accounts.
• D. Increase assets, increase expenses, or increase dividends/withdrawals (and decrease liabilities, equity, or revenue).

Answer: (A)

Verified step by step guidance

1. Understand the nature of double-entry accounting, where every transaction affects at least two accounts with debits and credits to keep the accounting equation balanced.
2. Recall the accounting equation: \(\text{Assets} = \text{Liabilities} + \text{Equity}\), and know that debits and credits affect these accounts differently.
3. Recognize that a credit entry increases liabilities, equity, and revenue accounts, while it decreases assets, expenses, and dividends/withdrawals accounts.
4. Note that credits do not always increase an account balance; their effect depends on the type of account involved.
5. Conclude that credits and debits have opposite effects on accounts, so a credit does not have the same effect as a debit on all accounts.