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

question 62

Multiple Choice

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

• A)Asset and liability accounts have a normal debit balance.
• B)To debit an account means to increase it.
• C)Common Stock has a normal credit balance.
• D)To credit an account means to decrease it.

---

Definitions:

Capital Stock

The total physical, non-human assets of a company or economic system used in the production of goods and services.

Retail Value

The price at which goods are sold to the final consumer, inclusive of markups by retailers.

Directly

In a straightforward or unmediated way, often referring to a direct cause and effect relationship or manner of communication.

Indirectly

In a way that is not directly evident or straightforward; involving an intermediary step or process.