Which Pair of Accounts Follows the Rules of Debit and Credit

question 15

Multiple Choice

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

• A)Prepaid Insurance and Dividends
• B)Advertising Expense and Land
• C)Dividends and Service Revenue
• D)Interest Payable and Common Stock

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Definitions:

Budget Deficits

The situation where a government's expenditures exceed its revenues over a particular accounting period, leading to borrowing or debt accumulation.

Regulatory Policies

Rules or directives formulated by a governing body to regulate activities within specific areas or industries for public benefit.

Low Down-payment Loans

Loan types that require a smaller initial payment from the borrower, often used in the context of home mortgages.

Interest Rate Policy

A component of monetary policy, often set by a central bank, that determines the level of interest rates to influence economic activity.