Which of the Following Statements Regarding Accounts Is TRUE

question 100

Multiple Choice

Which of the following statements regarding accounts is TRUE?

• A)An asset is increased by a debit and decreased by a credit.
• B)Dividends are decreased by debits and increased by credits.
• C)A liability is increased by a debit and decreased by a credit.
• D)Revenue is increased by a debit; an expense is increased by a credit.

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Definitions:

Conditional Probability

The probability of an event occurring given the occurrence of another event, often represented as P(A|B).

Independent Events

Two or more events where the occurrence of one does not affect the probability of the other(s).

Event Will Not Occur

The probability that a specific event does not happen, which can be calculated by subtracting the event’s probability of occurring from 1.

Conditional Probability

The likelihood of one event happening after another event has already taken place.