Indicate which of the following accounts is increased by a credit a

Accounting Dec 16, 2020

Indicate which of the following accounts is increased by a credit

a. Accounts Payable.

b. Property, Plant and Equipment.

c. Retained Earnings.

d. Cost of Goods Sold.

Expert Solution

Answer: a. Accounts Payable and c. Retained Earnings

Asset accounts such as Property, Plant and Equipment and expense accounts such as Cost of Goods Sold are increased by a debit. Liabilities and Equity accounts such as Accounts Payable and Retained Earnings are increased by a credit.

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