Which of the Following Is True

question 51

Multiple Choice

Which of the following is true?

• A) Prepaid expenses are increased by a credit.
• B) Gains are increased by a debit.
• C) Losses are increased by a credit.
• D) Accumulated depreciation is increased by a credit.

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Definitions:

Non-Eligible Dividends

Dividends paid from earnings that are not eligible for the enhanced dividend credit in certain jurisdictions, typically leading to higher tax rates for the recipient than eligible dividends.

Cash Flow

The net amount of cash being transferred into and out of a business during a specific period.

Cash Flow from Operations

This reflects the cash that a company generates from its regular business activities, excluding long-term capital and investment costs.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short term liquidity of a company.