Which of the Above Diagrams Best Portrays the Effects of a Dramatic

question 74

Multiple Choice

Which of the above diagrams best portrays the effects of a dramatic increase in energy prices?

• A)A
• B)B
• C)C

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Definitions:

Journal Entry

A record in accounting that logs a transaction and shows the affected accounts in the form of debits and credits.

Debits

Accounting entries that increase assets or expenses and decrease liabilities, equity, or revenue, recorded on the left side of accounting ledgers.

Credits

Accounting entries that increase liabilities or decrease assets, or record income in double-entry bookkeeping.