Which of the Following Require a Debit Entry

question 46

Multiple Choice

Which of the following require a debit entry?

• A) Contributions of capital
• B) Increases in revenues
• C) Increases in liabilities
• D) Decreases in shareholders' equity

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Definitions:

Pure Rate

The interest rate that reflects only the time value of money.

Liquidity Risk Premium

The additional return demanded by investors for holding assets that are not easily convertible into cash without a significant loss in value.

Savings Equals Investment

A principle in macroeconomics indicating that within an economy, total savings in a period must equal total investments.

Economic Principle

A fundamental concept or guiding theory that forms the basis of economic analysis and decision-making.