Which of the Following Are Debits

question 35

Multiple Choice

Which of the following are debits?

• A) contributions of capital
• B) increases in revenues
• C) increases in liabilities
• D) decreases in owners' equity.

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Definitions:

Debt-equity Ratio

An indicator that differentiates the financing portion between debt and equity for company assets.

External Financing

Funds a company acquires from outside sources, such as bank loans, issuing bonds, or selling stock, to support its operations and growth initiatives.

Full Capacity

Full capacity refers to the maximum level of output that a company can sustain over a period, utilizing all available resources efficiently.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its planned activities when internal cash flow is insufficient.