Multiple Choice
Which of the following statements is true regarding debits and credits?
A) On the income statement, debits are used to increase account balances, whereas on the statement of financial position, credits are used to increase account balances.
B) Before adjustments, debits will not equal credits in the trial balance.
C) The rules for debit and credit and the normal balance of Share Capital-Ordinary are the same as for liabilities.
D) On the income statement, revenues are increased by debit whereas on the statement of financial position retained earnings is increased by a credit.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: A ledger is where the company initially
Q51: The trial balance is used to prepare
Q52: The closing process<br>A) Is done each time
Q53: Real (permanent) accounts are revenue, expense, and
Q54: Each adjusting entry affects one statement of
Q58: Reversing entries do not apply to which
Q60: Nominal accounts are also called<br>A) temporary accounts.<br>B)
Q65: A reversing entry should never be made
Q97: In general, debits refer to increases in
Q142: Which type of account is always debited