Which of the Following Statements Is True

question 9

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 increase liabilities and decrease assets.

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Definitions:

Goods

Tangible products that satisfy human wants or needs.

Production Possibilities Frontier

A curve that represents the maximum productive capacity of an economy when all resources are fully utilized.

Consumption Possibilities

The range of goods and services that a consumer can afford to purchase at a given level of income and prices.

Trade

The exchange of goods and services between individuals or entities, typically in an attempt to benefit from differences in cost or value.