Which of the Following Accounts Follows the Rules of Debit

question 136

Multiple Choice

Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?

• A)Prepaid Insurance and Dividends
• B)Dividends and Interest Revenue
• C)Interest Payable and Common Stock
• D)Advertising Expense and Land

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Definitions:

SEC

The Securities and Exchange Commission (SEC) is a U.S. federal agency responsible for regulating the securities industry and protecting investors.

Disclosure Requirements

Regulations mandating companies to provide certain information to investors, ensuring transparency and informed decision-making.

Prospectus

A legal document issued by companies that are offering securities for sale, which provides details about the investment, including risks, objectives, and financial statements.

Registration Statement

A set of documents submitted to securities authorities (like the SEC) that provides essential facts and information about an investment offering for sale to the public.