A Credit Entry

question 211

Multiple Choice

A credit entry:

• A) Is recorded on the left side of a T-account.
• B) Is always a decrease in an account.
• C) Increases asset and expense accounts, and decreases liability, owner's capital, and revenue accounts.
• D) Is always an increase in an account.
• E) Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts.

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Definitions:

Expected Growth Rates

Forecasts of how fast particular economic indicators, such as sales or earnings, will grow over a specified period.

PEG Ratio

PEG Ratio stands for Price/Earnings to Growth ratio, a stock's valuation metric that evaluates a stock's price-earnings ratio relative to its earnings growth rate, offering insight into its future potential compared to its current earnings.

Value Stocks

Stocks that traders believe are underpriced relative to their intrinsic value, often indicated by characteristics like low price-to-earnings ratios.

Constant-Growth DDM

A valuation model for stocks, assuming dividends grow at a constant rate indefinitely, used to calculate the present value of the expected dividends.