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:

Market Participants

Entities or individuals that engage in the buying, selling, or exchange of goods and services in a particular market.

Maximize Utility

An economic principle that suggests individuals seek to obtain the highest level of satisfaction possible from their resources.

Maximize Benefits

Strategies or actions aimed at obtaining the greatest possible advantage or value from a situation, resource, or system.

Organizational Architecture

The structure and systems in place within an organization that shape its behavior and performance.