Which of the Following Statements About the Rules of Debits

question 51

Multiple Choice

Which of the following statements about the rules of debits and credits is CORRECT?

• A)An asset is increased by a credit.
• B)Dividends are decreased by debits.
• C)A liability is increased by a debit.
• D)Revenue is increased by a credit.

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Definitions:

Inefficiency

A situation where resources are not used in the most effective way, leading to wasted potential output.

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a price change.

Increase Tax Revenue

Strategies or activities undertaken by a government to enhance the amount of money it collects from taxes.

Tax Incidence

Tax Incidence refers to the analysis of the effect of a particular tax on the distribution of economic welfare, showing which group – consumers or producers – ultimately bears the burden of the tax.