In double-entry accounting, increases in which type of accounts are recorded as credits?

In double-entry accounting, increases in liability and revenue accounts are recorded as credits because of the fundamental accounting equation: Assets = Liabilities + Equity. To maintain this balance, when a liability or revenue account increases, it is necessary to credit these accounts.

Liability accounts represent what a company owes, and when these accounts increase, typically due to borrowing or incurring obligations, a credit is recorded. Similarly, revenue accounts indicate money earned by the company. When revenue increases, such as from sales or services provided, it is credited to reflect the increase in income.

Understanding this system is crucial because it ensures that all financial transactions are accurately represented in the accounting records, maintaining the integrity of the financial statements. In contrast, asset and expense accounts increase with debits; therefore, they do not align with the question's focus on increases recorded as credits.