Which of the Following Accounts Increases with a Debit

question 30

Multiple Choice

Which of the following accounts increases with a debit?

• A)Cash
• B)Interest Payable
• C)Accounts Payable
• D)Smith, Capital

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Definitions:

Dividend Yield Ratio

A financial ratio indicating how much a company pays out in dividends each year relative to its share price.

Acid-test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable).

Debt-to-equity Ratio

A financial indicator showing how much of a company's assets are financed by debt compared to shareholders' equity.

Receivable Turnover

A financial ratio that measures how efficiently a company collects its outstanding credit sales, typically calculated annually.