Which of the Following Rules Is Incorrect

question 59

Multiple Choice

Which of the following rules is incorrect?

• A) The accounting equation must always remain in balance.
• B) Asset accounts are increased by debit entries and decreased by credit entries.
• C) Expense accounts normally have debit balances.
• D) Common stock accounts are increased by debit entries and decreased by credit entries.

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Definitions:

Executions Search

A legal process to investigate if there are any outstanding judgments or legal claims against an individual's or company's assets.

Vendor's Solicitor

A legal professional who represents the seller in a property transaction, responsible for the legal aspects of selling the property.

Monetary Damages

Compensation in the form of money awarded to a party in a lawsuit for loss or injury caused by the actions of another.

Rescind

To cancel, revoke, or repeal a contract, agreement, or resolution, often due to the discovery of some error or misrepresentation.