Which of the Following Is NOT True About an Asset

question 116

Multiple Choice

Which of the following is NOT true about an asset?

• A) Its normal balance is a debit.
• B) To increase an asset a debit entry would be made.
• C) To increase it, a credit entry should be made.
• D) To decrease it, a credit entry should be made.

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Definitions:

Legal Positions

Various stances or points of view related to law, including interpretations of statutes, legal principles, and case law by individuals or organizations.

Profit Share

An arrangement where profits from a business venture are distributed among the participants or stakeholders.

General Partner

A partner in a limited partnership whose liability is unlimited.

Limited Liability

Refers to a legal structure where a person's financial responsibility for business debts does not exceed their investment in the company.