The Statement That Is Incorrect Is

question 15

Multiple Choice

The statement that is incorrect is:

• A)A debit entry is used to increase assets
• B)A credit entry is used to increase liabilities
• C)A credit entry is used to increase expenses
• D)A debit entry is used to decrease equity

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Definitions:

Payroll Taxes

Financial obligations required from both employers and employees, usually based on a percentage of the compensation that employers distribute to their staff.

Rent Expense

The cost incurred by a company or individual for using a property or equipment owned by someone else.

Time Period Assumption

An accounting principle that allows the business operations to be divided into specific time periods for reporting purposes.

Revenue Recognition Principle

An accounting principle that dictates under what conditions revenue is recognized and determines when revenue is earned and recorded.