What is Credit/decreases?

• A. Cash received by the court
• B. A charge for a surface provided by the court
• C. Cash paid out or disbursed
• D. The balance in the company's bank account

Answer: (C)

In double-entry accounting, the credit side of an asset account like cash represents a decrease in that asset. When cash is paid out or disbursed, the cash balance goes down, so that outflow is recorded as a credit. That’s why the statement describing cash paid out or disbursed best fits the idea of a credit/decrease.

Cash received by the court would increase cash (a debit to cash), not decrease it. A charge for a surface provided by the court isn’t about reducing the cash balance in this sense. The balance in the company's bank account is simply the current amount remaining, which changes with both debits and credits, not specifically defining a decrease.