Which of the Following Is Not True of the Terms

question 18

Multiple Choice

Which of the following is not true of the terms debit and credit?

• A) They can be abbreviated as Dr. and Cr.
• B) They can be interpreted to mean increase and decrease.
• C) They can be used to describe the balance of an account.
• D) They can be interpreted to mean left and right.

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Definitions:

Secured Creditor

A creditor who has the benefit of a security interest in an asset of the debtor, giving them a right to take possession of the secured property if the debtor fails to repay the debt.

Lender

An entity or individual that provides funds to another under the agreement that the funds will be repaid, typically with interest.

Dischargeable Debts

Debts that can be eliminated through bankruptcy proceedings, releasing the debtor from personal liability for certain debts.

Chapter 7

A provision under the U.S. Bankruptcy Code that deals with the process of liquidation, where a debtor's assets are sold off to pay creditors.