Which of the Following Double Entries Will Result in Decreases

question 18

Multiple Choice

Which of the following double entries will result in decreases in liabilities?
Please select all that apply.

• A) Debit loan, credit bank (double entry to record the repayment of a loan from the bank).
• B) Debit sales, credit cash (double entry to record a refund of cash to a customer for a cancelled sale).
• C) Debit trade payables, credit bank (double entry to record cash paid to suppliers of goods and services made on credit).
• D) Debit capital account, credit bank (double entry to record the payment of cash to the owner of a business).

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Definitions:

Base Period

A specific time period against which economic indicators or financial indexes are measured to assess changes over time.

Index of Prices

A statistical measure that shows changes in the price level of a selected basket of goods and services over time.

Farm Product

Products that are derived from agriculture, including both crops and livestock.