Which of the Following Is Not a Correct Rule of Debits

question 71

Multiple Choice

Which of the following is not a correct rule of debits and credits?

• A) Assets, expenses, and dividends are increased by debits.
• B) Assets are decreased by credits and have a normal debit balance.
• C) Liabilities, revenues, and stockholders' equity are increased by credits.
• D) The normal balance for revenues and expenses is a credit.

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Definitions:

Independent Demand

Independent demand is the need for a finished product or service that is not directly influenced by the demand for other products or services.

ERP

Enterprise Resource Planning; a software that integrates core business processes into one system.

Wheeled Coach

A reference to a company or concept in the context of efficient manufacturing or service processes, possibly related to emergency vehicles.