Which of the Following Statements Regarding Debits and Credits Is

question 68

Multiple Choice

Which of the following statements regarding debits and credits is always true?

• A)Debits decrease accounts while credits increase them.
• B)The total value of all debits recorded in the ledger must equal the total value of all credits recorded in the ledger.
• C)The total value of all debits to a particular account must equal the total value of all credits to that account.
• D)A debit balance of $500 in the cash account means that cash receipts exceeded cash payments by $500.

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Definitions:

Coordination

The organization of different elements of a complex body or activity so as to enable them to work together effectively.

Complacency Trap

A situation where a person or organization becomes overly content with their achievements and stops striving for improvement or growth.

Rigidity

The quality of being unable to bend or be forced out of shape; applied to organizations, it often refers to the inflexibility in rules, procedures, and management.

Flexibility

The capacity to adapt to new, different, or changing requirements and conditions.