Which of the Following Accounts Is Increased with a Debit

question 128

Multiple Choice

Which of the following accounts is increased with a debit?

• A)Dividends
• B)Legal Fees Earned
• C)Rent Payable
• D)Common Shares

---

Definitions:

Shortage Cost

The cost incurred from the inability to satisfy demand for a product or service due to insufficient resources or supply.

Carrying Costs

The total cost of holding inventory, including storage, insurance, depreciation, and opportunity costs.

Storage Costs

Expenses incurred for storing goods, which may include warehousing, refrigeration, insurance, and security expenses.

Pro-forma Cash Flow

An estimate of future cash inflows and outflows of a company, usually projecting future financial performance.