Identify the Statement Below That Is Correct

question 235

Multiple Choice

Identify the statement below that is correct.

• A) The left side of a T-account is the credit side.
• B) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.
• C) The left side of a T-account is the debit side.
• D) Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts.
• E) Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts.

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Definitions:

Capital Goods

Long-lasting goods acquired or manufactured by a business that are used in the production of other goods or services, rather than being sold to consumers.

Opportunity Cost

The expense incurred by not selecting the second-best choice available when deciding between multiple options.

Consumer Goods

Products and services that are purchased for consumption by the average household or end user, rather than for the purpose of resale or further processing.

Capital Goods

Are tangible assets such as buildings, machinery, equipment, vehicles, and tools that an organization uses to produce goods or services.