In the debit-credit framework, increases are entered on the credit side of a(n) what type of account?

• A. Expense account
• B. Asset account
• C. Liability account
• D. Dividend account

Answer: (C)

Verified step by step guidance

1. Understand the debit-credit framework: In accounting, every account type has a normal balance side where increases are recorded. For assets and expenses, increases are recorded on the debit side, while for liabilities, equity, and revenue accounts, increases are recorded on the credit side.
2. Identify the account types and their normal balances: Asset and expense accounts normally have debit balances, so increases go on the debit side. Liability and equity accounts normally have credit balances, so increases go on the credit side.
3. Apply this knowledge to the question: Since the question asks for the account type where increases are entered on the credit side, eliminate asset and expense accounts because their increases are debited.
4. Consider dividend accounts: Dividends are distributions to owners and typically have debit balances, so increases in dividends are recorded on the debit side, not credit.
5. Conclude that liability accounts are the correct answer because they normally have credit balances, and increases in liabilities are recorded on the credit side.