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:

Sell

The act of transferring ownership of a good or service to another party in exchange for money or other compensation.

Offers More

Implies providing additional benefits or proposals beyond the initial offer.

Counteroffers

In negotiations, a response to an original offer that makes changes or presents new terms before an agreement is reached.

Assignee

An individual or entity to whom rights or interests have been transferred by another party.