Which of the following would be increased by recording a credit?

• A. Assets
• B. Drawings
• C. Revenues
• D. Expenses

Answer: (C)

In double-entry bookkeeping, increases to revenue are recorded with a credit. Revenue is part of owners’ equity, so when the business earns income, that income boosts equity. Crediting the revenue account directly reflects that higher income, and it ties to the overall increase in retained earnings over time.

For example, when a service is performed and billed, you would debit Accounts Receivable (an asset) and credit Revenue. The credit to Revenue increases the revenue balance, signaling that more income was earned.

Assets rise with debits, not credits, so recording a credit to an asset wouldn’t increase it. Expenses also increase with debits, not credits. Drawings (withdrawals by the owner) typically have a debit balance and increase with a debit; a credit would decrease drawings, not increase them.