Multiple Choice
Which of the following statement 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
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