In Accordance with the Debit and Credit Rules, Which of the Following

question 131

Multiple Choice

In accordance with the debit and credit rules, which of the following is true?

• A) Debits increase assets.
• B) Credits increase assets.
• C) Debits increase both assets and common stock.
• D) Credits increase both assets and liabilities.

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Definitions:

Research and Development Costs

Expenses related to the investigation and discovery of new knowledge, products, or processes, which can improve a company's future performance and competitiveness.

Direct Ownership

A situation in which an individual or entity holds direct title to assets, such as property or stocks, without any intermediaries.

Political Risk

The potential for losses or other adverse effects on business operations due to political instability or changes in government policies.

Foreign Market

A market outside of a company's home country where it engages in selling its products or services.