A Debit Entry to a Credit Account Will

question 30

Multiple Choice

A debit entry to a credit account will::

• A) Increase the debit balance on that account IE increase the asset or expense.
• B) Decrease the debit balance on that account IE decrease the asset or expense.
• C) Decrease the credit balance on that account IE decrease the liability, capital or income.
• D) Increase the credit balance on that account IE increase the liability, capital or income.

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Definitions:

Face Value

The original cost of a security or bond, as printed on the certificate, which does not change over time.

Coupon Rate

The interest rate specified on a bond or other fixed income security that the issuer promises to pay to the holder until maturity.

Current Yield

is the annual income (interest or dividends) divided by the current price of the security, used to assess the return of an investment.

Market Price

The prevailing market price for an asset or service available for trade or acquisition.