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:

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded.

Market Demand Schedule

A table showing the quantities of a particular good or service that consumers will purchase at various prices over a specified period.

Equilibrium Price

The pricing point in the market where the amount of goods being sold matches the amount being sought.

Equilibrium Quantity

The level of goods or services available and needed at the price of equilibrium.