Which of the Following Statements Regarding Credit Entries Is True

question 49

Multiple Choice

Which of the following statements regarding credit entries is true?

• A)Credits decrease liability accounts.
• B)Credits increase asset accounts.
• C)Credits increase the common stock account.
• D)Credits increase asset and common stock accounts,and decrease liability accounts.

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Definitions:

Transformations

Comprehensive changes or conversions in form, nature, or appearance, especially significant in scope or scale.

Short-term Perspective

A focus on immediate or near-future outcomes and goals, often at the expense of long-term planning.

Self-interest

The pursuit of personal gain or advantage, often considered a motivation in economics and psychology.

Proactive Behavior

Actions taken by individuals that are anticipatory, change-oriented, and self-initiated to influence their environment.