Which of the Following Statements Is True

question 120

Multiple Choice

Which of the following statements is true?

• A) Debits increase assets and increase liabilities.
• B) Credits decrease assets and decrease liabilities.
• C) Credits decrease assets and increase liabilities.
• D) Debits decrease liabilities and decrease assets.

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Definitions:

Long-range Planning

Long-range Planning involves setting goals and determining strategies for achieving them over an extended period, often three to five years into the future, to guide sustainable business growth.

Long-range Plans

Strategic plans that encompass a broad vision and long-term goals of an organization, typically extending several years into the future.

Long-term Goals

Objectives or targets a company or individual aims to achieve over an extended period, usually exceeding one year.

Operating Budgets

Detailed projections of income and expenses associated with the day-to-day operations of a business for a specific period.