Which of the Following Rules Is Incorrect

question 58

Multiple Choice

Which of the following rules is incorrect?

• A) Credits decrease the dividends account.
• B) Debits increase the common stock account.
• C) Credits increase revenue accounts.
• D) Debits decrease liability accounts.

---

Definitions:

Exercise Price

The cost at which an options contract holder has the right to purchase (in the case of a call option) or sell (with a put option) the base asset.

Put Option

It's a financial arrangement granting someone the choice, but excluding the duty, to dispose of an allocated quantity of an essential asset at a certain value within an allotted interval.

Buyer

An individual or entity that purchases goods or services in a transaction.

Strike Price

The specified price at which an options contract can be exercised.