Question

For each account shown below, determine if posting a credit to
the account would result in an increase or a decrease to the
account balance. Select your answer by clicking in the drop
down box to the right of each account.

Group of answer choices

cost of goods sold

      [ Choose ]            increase            decrease      

notes payable

      [ Choose ]            increase            decrease      

gain on sale of building

      [ Choose ]            increase            decrease      

prepaid rent

      [ Choose ]            increase            decrease      

common stock

      [ Choose ]            increase            decrease      

Answer 1

cost of goods sold	decrease	- because it is a cost, cost would decrease credit has been given
Notes payable	Increase	- because its liabilities , liabilities would increase if credit given
gain on sale of building	Increase	- because its income , income would increase if credit has given
Prepaid rent	decrease	- it it assets , asset would decrease if credit has given
Common stock	increase	- it’s a equity , it would increase if credit has given