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Operating Activities Utilities Expense Retained Earnings Question 5. Question : A credit is used to record: An increase in an expense account An increase in an asset account An increase in an unearned revenue account A decrease in a revenue account A decrease to retained earnings Question 6. Question : Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include: Assets increase by $75,000 and expenses increase by $75,000 Assets increase by $75,000 and expenses decrease by $75,000