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In financial accounting, which of the following accounts normally increases with a credit?
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2. Transaction Analysis
Journal Entries: Debits and Credits
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In double-entry accounting, which of the following accounts is increased with a debit?
A
Service Revenue (a revenue account)
B
Accounts Payable (a liability)
C
Common Stock (a stockholders’ equity account)
D
Cash (an asset)
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Understand the basic rule of double-entry accounting: every transaction affects at least two accounts, with one account debited and another credited.
Recall that asset accounts increase with debits and decrease with credits, while liability and equity accounts increase with credits and decrease with debits.
Identify the type of each account given: Service Revenue is a revenue account, Accounts Payable is a liability, Common Stock is an equity account, and Cash is an asset.
Apply the rule to each account: revenue accounts increase with credits, liabilities increase with credits, equity accounts increase with credits, and assets increase with debits.
Conclude that among the options, the account increased with a debit is the Cash account, which is an asset.
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