Which of the following correctly describes crediting an asset account?

Crediting an asset account is best described by the choice that indicates it results in a decrease of the asset. In double-entry accounting, asset accounts normally have a debit balance. When you credit an asset account, you are essentially reducing the total amount of that asset. This process typically happens in a few scenarios, such as when an asset is sold, written off, or is being depreciated.

For instance, if a company sells equipment, the equipment account—which is an asset—would be credited to reflect the reduction in the asset due to the sale. This fundamental aspect of crediting accounts ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced. In this context, recording expenses or liabilities pertains to different accounts and functions in accounting.