Which of the Following Debits and Credits Describes the Payment

question 50

Multiple Choice

Which of the following debits and credits describes the payment of interest and principal on a loan?

• A)Debit an asset and credit a liability
• B)Debit an asset, debit an expense, and debit a liability
• C)Credit an asset, debit an expense, and debit a liability
• D)Credit an asset and debit a liability

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Definitions:

Court Order

An official directive issued by a judge that requires a person or entity to do or refrain from doing something.

Restrictive Covenant

In property law, a condition imposed by the seller as to what the purchaser can use the land for; in employment law, a commitment not to work in a certain geographical area for a designated period of time.

Easement

The right of a person other than the owner to use a portion of private property.

Prescription

A health care professional's formal instruction authorizing a patient to be provided a medicine or treatment.