Which of the Statements of the Rules of Debit and Credit

question 69

Multiple Choice

Which of the statements of the rules of debit and credit is true?

• A) Decrease Accounts Receivable with a credit and the normal balance is a credit.
• B) Increase Accounts Payable with a credit and the normal balance is a credit.
• C) Increase Revenue with a debit and the normal balance is a debit.
• D) Decrease Cash with a debit and the normal balance is a debit.

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Definitions:

Rationing

The controlled distribution of scarce resources, goods, or services, often implemented during shortages to ensure equitable distribution among all individuals.

Government Issued

Refers to products or securities that are provided or sanctioned by a government body, such as bonds or legal tender.

Price System

An economic mechanism where prices determined by supply and demand allocate resources efficiently in a market economy.

Scarce Goods

Goods that are limited in supply in comparison to their demand, leading to economic decisions regarding their allocation.