Which of the Following Is a True Statement Regarding Debits

question 133

Multiple Choice

Which of the following is a true statement regarding debits and credits?

• A)If a company earned a profit,debits will not equal credits.
• B)For a business,debits are better than credits.
• C)A company's books are not in balance if they have a current period loss.
• D)Assets and expenses are both increased with a debit.
• E)Liabilities and equity are both increased with a debit.

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Definitions:

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Salvage Value

The projected final worth of an asset at the end of its period of use.

Operating Costs

The expenses related to the day-to-day activities of a business, such as wages and rent.

After-Tax Discount Rate

The discount rate used in financial analysis that reflects the net cost or benefit of investment after accounting for taxes.