Which of the Following Applications of the Rules of Debit

question 37

Multiple Choice

Which of the following applications of the rules of debit and credit is true?

• A) decrease Prepaid Insurance with a credit and the normal balance is a credit
• B) increase Accounts Payable with a credit and the normal balance is a debit
• C) increase Equipment with a debit and the normal balance is a debit
• D) decrease Cash with a debit and the normal balance is a credit

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Definitions:

Unconditional Victory

A complete and total win in a conflict or competition without any conditions or compromises.

European Union

A political and economic union of 27 member countries that are located primarily in Europe, aiming to ensure free movement of goods, services, and people.

Euro

The European Union’s common currency.

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.