To increase the balance of a liability account, you would?

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Multiple Choice

To increase the balance of a liability account, you would?

Explanation:
Liability accounts have a normal credit balance, so increases to liabilities are recorded on the credit side. To increase the balance of a liability, you credit that liability account. For example, when you borrow cash, you debit Cash and credit Notes Payable, which increases the liability. Debiting the liability would reduce it, and debiting or crediting other accounts would not increase the liability—so the credit side is the correct way to show a higher obligation.

Liability accounts have a normal credit balance, so increases to liabilities are recorded on the credit side. To increase the balance of a liability, you credit that liability account. For example, when you borrow cash, you debit Cash and credit Notes Payable, which increases the liability. Debiting the liability would reduce it, and debiting or crediting other accounts would not increase the liability—so the credit side is the correct way to show a higher obligation.

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