A Credit Increases the Balance of Which Types of Accounts

question 159

Multiple Choice

A credit increases the balance of which types of accounts?

• A) revenue and assets
• B) liabilities and assets
• C) liabilities and expenses
• D) shareholders' equity and liabilities

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Definitions:

Pre-Tax Cost

The expense or cost incurred by an entity before the deduction of taxes.

Net Present Value

A financial measure that computes the disparity between the present value of cash coming in and going out over a certain period.

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and distribution fees.