Which of the Following Is/are True About a "Credit"? I

question 139

Multiple Choice

Which of the following is/are true about a "credit"? I.It is part of the double-entry procedure that keeps the accounting equation in balance.
II) It represents a decrease to assets.
III) It represents an increase to liabilities.
IV) It is on the right side of a T-account.

• A)I and II.
• B)IV only.
• C)I,II,and III.
• D)I,II,III,and IV.

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Definitions:

Limited Budget

A financial constraint that limits the amount of money available for spending or investing.

Marginal Utilities

refers to the additional satisfaction or utility gained by consuming one more unit of a good or service.

Money Income

Money income includes the total earnings received by an individual or household in the form of wages, salaries, benefits, and returns on investments over a period.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, where individuals substitute away from more expensive goods towards cheaper ones.