The Rule That Is Incorrect Is

question 30

Multiple Choice

The rule that is incorrect is:

• A)Increases in assets are debits
• B)Increases in income are debits
• C)Increases in equity are credits
• D)Increases in liabilities are credits

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Definitions:

Net Income

The total profit of a company after all revenues and gains are accounted for and all expenses and losses are deducted.

Dividend Amount

The sum of money paid regularly by a company to its shareholders out of its profits (or reserves).

Preferred Stock

A type of stock that provides dividends before any dividends are provided to common stockholders, often with fixed rates.

Par Value

The face value of a bond or stock, as specified by the issuing company, which does not necessarily reflect its market value.