Which of the Following Statements Is Correct

question 109

Multiple Choice

Which of the following statements is correct?

• A) The left side of a T-account is the credit side.
• B) Entries that decrease asset and expense accounts, or increase liability, equity, and revenue accounts are posted as debits.
• C) The left side of a T-account is the debit side.
• D) The right side of a T-account is the debit side.
• E) Entries that increase asset, expense, and revenue accounts are posted as debits.

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Definitions:

Rate of inflation

The measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Purchasing power

The worth of a currency measured by how many goods or services one unit of it can purchase.

Perpetual fund

A type of investment fund with no fixed termination date, allowing investors to contribute and withdraw capital indefinitely.

Compounded annually

Interest on a deposit or loan calculated once per year, where each year's interest is added to the principal.