Common Stock and Retained Earnings Are Increased by Debits

question 171

True/False

Common Stock and Retained Earnings are increased by debits.

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Definitions:

Unearned Revenues

Liabilities recognized when a company receives payment for goods or services yet to be delivered or performed.

Debit

An accounting entry that results in either an increase in assets or expenses or a decrease in liabilities, equity, or income.

Credit

The provision of resources (like money) by one party to another, where repayment is expected in the future, often with interest.

Journal Entries

Records of financial transactions in the double-entry bookkeeping system, noting debits and credits for each transaction.