Which Pair of Accounts Has the Same Set of Rules

question 74

Multiple Choice

Which pair of accounts has the same set of rules for debit and credit entries?

• A)Service Revenue and Rent Expense
• B)Dividends and Retained Earnings
• C)Equipment and Salaries Expense
• D)Accounts Receivable and Accounts Payable

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Definitions:

Constant Dollar

A term used in economics to describe a monetary value that has been adjusted for inflation, thereby facilitating comparison of purchasing power over different periods.

Interest Expense

The cost incurred by an entity for borrowed funds, often reported on the income statement as a non-operating expense.

Unamortized Premium

The portion of the bond premium that has not yet been amortized (expensed) over the life of the bond.

Bonds Payable

Long-term liabilities representing the amount owed by an entity to bondholders.