Which of the Following Statements Is True About a Debit

question 13

Multiple Choice

Which of the following statements is true about a debit balance in a Change Fund?

• A) It is classified as a revenue account and is recorded on the income statement.
• B) It is classified as an asset and is recorded on the balance sheet.
• C) It is classified as a miscellaneous expense and is recorded on the income statement.
• D) It is classified as a liability and is recorded on the balance sheet.
• E) It is classified as owner's equity and is recorded on the balance sheet.

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a company.

Tax Deductible

Expenses that can be subtracted from gross income, lowering the taxable income and thus the amount of tax owed.

Investor's Perspective

The viewpoint or considerations of an individual or entity actively investing or planning to invest in markets, focusing on potential risks and returns.

Unusually Risky

Describes investments or actions that carry a higher than normal level of risk, often due to uncertain outcomes or volatile conditions.