Which type of accounts increase income when credited?

Revenue accounts increase income when credited because they represent the earnings generated from business operations. When a revenue account is credited, it reflects an increase in the revenue recognized by the business, which ultimately adds to the overall income reported in the financial statements.

In accounting, crediting a revenue account is part of the double-entry accounting system, where increases in income must be contrasted with either expenses or other reductions in equity. Revenue accounts track money received from sales of goods or services, so the act of crediting them directly corresponds to the increase in income for the period.

The other types of accounts do not increase income through crediting. Expense accounts, when credited, would decrease expenses, leading to an increase in net income but not directly affecting income as revenue does. Contra accounts serve as offsets to other accounts, such as accumulated depreciation, and do not contribute to income directly. Finally, asset accounts represent resources owned by the business; crediting these accounts typically indicates a decrease in assets, which does not lead to an increase in income. Therefore, revenue accounts are unique in their function of directly increasing income when credited.