Which of the Following Rules Is Incorrect

question 76

Multiple Choice

Which of the following rules is incorrect?

• A)The accounting equation must always remain in balance.
• B)Asset accounts are increased by debit entries and decreased by credit entries.
• C)Expense accounts normally have debit balances.
• D)Capital stock accounts are increased by debit entries and decreased by credit entries.

---

Definitions:

Ethical Environment

A workplace or setting in which ethical standards are promoted, upheld, and integrated into everyday practices.

Personal Interests

Individual preferences, hobbies, or activities that a person finds enjoyable or fulfilling outside their professional responsibilities.

Recognition

The acknowledgment or appreciation of someone's work, achievement, or qualities by others.

Ethical Screen

A filter through which decisions are evaluated based on moral principles, ensuring actions taken by organizations or individuals meet certain ethical standards.