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:

Goods Exports

The process of exporting goods that are made within a country to different countries for the purposes of selling or trading.

Goods Imports

The purchase of physical products from other countries to bring into one's own country.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net secondary income.

Financial Account

Part of the balance of payments, it records transactions that involve the exchange of international ownership of assets.