Question

An account that would be decreased by a credit is which of the following:

a. cash.

b. fees earned.

c. capital.

d. accounts payable

Answer 1

a) cash: always cash balance in balance sheet shows debit balance only , hence if any credit has been posted the account would be decreased by that amount.hence cash is the correct answer.

b)fees earned:This account always shows the credit balance in tje balance sheet,hence posting of credit will increase the account balance.hence it is not the correct answer.

c) capital: This account also primarily shows credit balance in the financial statements.this account would be increased by posting any credit entry to this account.hence it is not the correct answer.

d)accounts payable:It is the account that shows credit liability to pay to outsiders,which means any credit to this account would increase the account balance.hence it is not the correct answer.

Conclusion:hence the required option is :a)cash.