To decrease the balance of an asset account, you would?

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Multiple Choice

To decrease the balance of an asset account, you would?

Explanation:
Assets typically carry a debit balance, so increases are recorded with debits and decreases with credits. To decrease the balance of an asset account, you would credit it, which reduces the amount shown. Debiting an asset would increase its balance, not decrease it, and increasing the account would also raise the balance. Simply saying to decrease the account isn’t specific enough in double-entry terms; the proper way to lower an asset is to apply a credit to that asset account.

Assets typically carry a debit balance, so increases are recorded with debits and decreases with credits. To decrease the balance of an asset account, you would credit it, which reduces the amount shown. Debiting an asset would increase its balance, not decrease it, and increasing the account would also raise the balance. Simply saying to decrease the account isn’t specific enough in double-entry terms; the proper way to lower an asset is to apply a credit to that asset account.

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