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

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

• A. Credit the asset account
• B. Debit the asset account
• C. Increase the asset account
• D. Decrease the asset account

Answer: (A)

Assets carry a normal debit balance, so increases are recorded on the debit side and decreases on the credit side. To show a reduction in the balance of an asset, you use a credit to that asset account. This aligns with the basic rule that debits increase asset accounts and credits decrease them. For example, paying cash reduces the cash account, so you credit cash. Debiting would increase the asset, not decrease, and other actions that increase assets wouldn’t reflect a reduction. Therefore, credit the asset account to record the decrease.

Assets carry a normal debit balance, so increases are recorded on the debit side and decreases on the credit side. To show a reduction in the balance of an asset, you use a credit to that asset account. This aligns with the basic rule that debits increase asset accounts and credits decrease them. For example, paying cash reduces the cash account, so you credit cash. Debiting would increase the asset, not decrease, and other actions that increase assets wouldn’t reflect a reduction. Therefore, credit the asset account to record the decrease.