The Side That Increases the Account Balance, by the Rules

question 7

Multiple Choice

The side that increases the account balance, by the rules of debit and credit, is said to be the

• A) debit side.
• B) credit side.
• C) normal balance.
• D) None of these answers are correct.

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Definitions:

Held-To-Maturity Securities

Debt securities that a company has the positive intent and ability to hold until they mature.

Noncurrent Assets

Long-term assets not expected to be liquidated or turned into cash within one year, such as property, plant, and equipment.

Unrealized Gains

Increases in value of assets that have not been sold yet, and therefore, the gains are not reflected in the financial statements as actual income.

Trading Securities

Securities that management intends to actively trade for profit.