162. Which of the following equations is correct? 163. When a company purchases inventory on account (on credit), which type of account is credited? A. asset b. expense c. owners” equity d. liability 164. Which of the following statements is false? A. Dividends are increased by credits and decreased by debits. B. An asset is increased by a debit and decreased by a credit. C. A liability is decreased by a debit and increased by a credit. D. Revenue is increased by a credit and an expense is increased by a debit.