Which of the Following Rules Is Incorrect

question 174

Multiple Choice

Which of the following rules is incorrect?

• A) Credits decrease the dividends account.
• B) Debits increase the share capital-ordinary account.
• C) Credits increase revenue accounts.
• D) Debits decrease liability accounts.

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Definitions:

Constructive Trust

(1) An implied trust in which a party is named to hold the trust for its rightful owner. (2) An equitable trust imposed on someone who wrongfully obtains or holds legal right to property he or she should not possess.

Created

Brought into existence; the act or process of bringing something into being that did not exist before.

Rightful Owner

A person or entity that legally possesses property or title.

Constructive Trust

A legal remedy imposed by a court to prevent unjust enrichment by transferring property from the person who unjustly benefits to the rightful owner.