Which of the Following Is True

question 107

Multiple Choice

Which of the following is true?

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

---

Definitions:

Responsibility Center

A segment of a business, such as a department or division, whose manager is accountable for specific financial activities and performance.

Budgetary Unit

An entity, such as a department or division, for which a budget is prepared and controlled.

Managerial Department

A department within an organization responsible for making management decisions, overseeing operations, and developing strategies.

Cash Budget

is a financial plan that estimates cash inflows and outflows over a specific period of time, often used for managing liquidity and ensuring financial stability.