Which of the Following Is Not a Correct Rule of Debits

question 56

Multiple Choice

Which of the following is not a correct rule of debits and credits?

• A) assets, expenses and withdrawals are increased by debits
• B) assets are decreased by credits and have a normal debit balance
• C) liabilities, revenues and owner's equity are increased by credits
• D) the normal balance for revenues and expenses is a credit

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Definitions:

Base Period

A specific time period used as a reference point to measure changes in economic or financial data over different periods of time.