The Rules of Debit and Credit May Be Summarized as Follows

question 63

Multiple Choice

The rules of debit and credit may be summarized as follows:

• A)Asset accounts are increased by debits,whereas,liabilities and owners' equity are increased by credits.
• B)The balance of a ledger account is increased by debit entries and is decreased by credit entries.
• C)Accounts on the left side of the balance sheet are increased by credits,whereas accounts on the right side of the balance sheet are increased by debits.
• D)The balance of a ledger account is increased by credit entries and is decreased by debit entries.

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Definitions:

Per Capita Income

The average income earned per person in a specific area or country, calculated by dividing the area's total income by its total population.

Income Growth

An increase in the amount of money received from work, investment, or other sources, over time, contributing to economic expansion or personal wealth.

World's Population

The total number of people currently living on Earth.

World's Output

The total production of goods and services by all countries and economies worldwide over a specified period of time.