Choose the TRUE Statement

question 108

Multiple Choice

Choose the TRUE statement.

• A)All asset accounts have a normal debit balance with the exception of cash which has a normal credit balance.
• B)The Contributed Capital account is increased by debits.
• C)When payment is made on a liability such as accounts payable,the liability account is decreased with a debit.
• D)The total amount of debits to asset accounts must equal the total amount of credits to liability and stockholders' equity accounts.

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Definitions:

Paid Vacation

Employer-provided benefit that offers employees paid time off from work, allowing them personal time while still receiving their usual compensation.

Health Insurance

Insurance coverage that pays for medical and surgical expenses incurred by the insured, often provided by employers or purchased individually.

Retirement Contributions

Money set aside into retirement accounts, such as a 401(k) or IRA, often with tax advantages.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, but also for some younger people with disabilities.