Which of the Following Statement Is True Regarding Debits and Credits

question 74

Multiple Choice

Which of the following statement is true regarding debits and credits?

• A)On the income statement, debits are used to increase account balances, whereas on the statement of financial position, credits are used to increase account balances.
• B)Before adjustments, debits will not equal credits in the trial balance.
• C)The rules for debit and credit and the normal balance of Share Capital-Ordinary are the same as for liabilities.
• D)On the income statement, revenues are increased by debit whereas on the statement of financial position retained earnings is increased by a credit.

---

Definitions:

Freudian Explanation

An interpretation based on Sigmund Freud's theories, often involving unconscious motives, conflicts, and experiences from early childhood.

Erikson's Concept

A theory proposed by Erik Erikson that outlines eight stages of psychosocial development that individuals pass through from infancy to adulthood.

Freudian Psychic Energy

Conceptualized by Sigmund Freud as the driving forces in the psyche which power all human behaviors and motivations, particularly manifested through the id, ego, and superego.

Fromm's Relatedness Need

A concept by Erich Fromm that emphasizes the human necessity to interact and connect with others for psychological health and well-being.