Which of the Following Statements About Debits Is False

question 54

Multiple Choice

Which of the following statements about debits is false?

• A)Debits increase assets.
• B)Debits decrease stockholders' equity.
• C)Debits decrease liabilities.
• D)Debits increase liabilities.

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Definitions:

Amortization

The gradual reduction of a debt over a period of time through regular payments of principal and interest.

Sales Commissions

Fees paid to salespersons for generating sales, typically calculated as a percentage of the sale amount.

Depreciation Measures

The methods or calculations used to determine the amount by which an asset's value decreases over time, such as straight-line or declining balance methods.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operational performance.