A credit to a liability account indicates Group of answer choices An error. A debit was made to an asset account. An increase in the liability. A decrease in the liability.

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Business

Gauge Cantrell

10 October, 16:14

A credit to a liability account indicates Group of answer choices An error. A debit was made to an asset account. An increase in the liability. A decrease in the liability.

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Answers (1)

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Itzel Shelton · Answer 1

An increase in the liability.

Explanation:

As we know that

The expenses, losses, and assets contain the debit balance whereas the liabilities, gains, and the stockholder equity contains the credit balance

So if there is an increase in an asset or any other account who contains debit balance so it would be displayed in the debit side

And, if there is an increase in liabilities or any other account who contains the credit balance so it would be displayed on the credit side