According to the Rules of Debit and Credit for Balance

question 128

Multiple Choice

According to the rules of debit and credit for balance sheet accounts:

• A) Increases in asset, liability, and owners' equity accounts are recorded by debits.
• B) Decreases in asset and liability accounts are recorded by credits.
• C) Increases in asset and owners' equity accounts are recorded by debits.
• D) Decreases in liability and owners' equity accounts are recorded by debits.

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Definitions:

Oral

relates to spoken rather than written communication, often used in contexts such as contracts, agreements, or testimonies.

Enforceable Legal Agreement

A contract or agreement that is valid under the law and can be upheld and compelled through legal action.

Special Accounting Software

Customized software solutions designed to meet the unique accounting and financial management needs of specific businesses or industries.

Parol Evidence Rule

The rule that states that evidence of oral statements made before signing a written agreement is usually not admissible in court to change or to contradict the terms of a written agreement.