Which of the Following Is Not a Correct Rule of Debits

question 71

Multiple Choice

Which of the following is not a correct rule of debits and credits?

• A) Assets, expenses, and dividends are increased by debits.
• B) Assets are decreased by credits and have a normal debit balance.
• C) Liabilities, revenues, and stockholders' equity are increased by credits.
• D) The normal balance for revenues and expenses is a credit.

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Definitions:

Deductible Student Loan Interest

Interest paid on a qualified student loan, which may be deductible, reducing the taxable income of the payer.

Tuition And Fees

Charges associated with enrollment and attendance at educational institutions, including costs for classes, administration, and sometimes room and board.

High Deductible Health Plan

A High Deductible Health Plan (HDHP) is a health insurance plan with lower premiums and higher deductibles than a traditional health plan, often linked to Health Savings Accounts (HSAs).

Health Savings Account

An account that allows individuals with high-deductible health plans to save money tax-free for medical expenses.