Which of the Following Statements About the Debit/credit Framework Is

question 146

Multiple Choice

Which of the following statements about the debit/credit framework is correct?

• A)All asset accounts have a normal debit balance with the exception of cash,which has a normal credit balance.
• B)The Common Stock account is increased by debits.
• C)When payment is made on a liability such as accounts payable,the liability account is decreased with a debit.
• D)The total amount of asset accounts must equal the total amount of liability accounts minus the total amount of stockholders' equity accounts.

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Definitions:

Secured Interest

A legal claim or lien on collateral that has been pledged by a borrower to secure payment of a debt.

Notation

A system of symbols or marks used for representing information, especially in mathematical or musical contexts.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property, used in the U.S. under the Uniform Commercial Code.

Certificate of Title

An official document indicating ownership of property, such as real estate or a vehicle.