Which of the following accounts would be increased with a Credit? (Select all that apply

Accounting Dec 16, 2020

Which of the following accounts would be increased with a Credit? (Select all that apply.)

a. Additional Paid-in Capital

b. Prepaid Rent

c. Revenue

d. Notes

e. Payable Inventory

Expert Solution

Remember that in double-entry bookkeeping, asset and expense accounts increase with credits and liability, quit and revenue accounts increase with a credit:

Item	Type of account	Increase wiht credit (Y/N)
a. Additional Paid-in Capital	Equity	Yes
b. Prepaid Rent	Asset	No
c. Revenue	Revenue	Yes
d. Notes	Payable = Liability	Yes
d. Notes	Receivable = Asset	No
e. Payable Inventory	Liability (Accounts Payable)	Yes

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