Which Pair of Accounts Follows the Rules of Debit and Credit

question 185

Multiple Choice

Which pair of accounts follows the rules of debit and credit in the opposite manner?

• A) Prepaid Insurance and Owner's Withdrawals
• B) Advertising Expense and Land
• C) Owner's Withdrawals and Medical Fees Earned
• D) Interest Payable and Owner's Capital

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Definitions:

R&D Expenditures

Funds invested by companies or governments in research and development to innovate or improve products, services, or processes.

Concentration Ratio

A measure indicating the market share of the largest firms in an industry, used to determine the market's level of competition.

Technological Opportunities

The potential for firms to develop innovations or improve processes due to advances in technology.

R&D Expenditures

Funds allocated by a company towards research and development efforts aimed at innovation and improving products or processes.