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
D
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The journal entry for recording payment for the short-term lease of a fixed asset would
a. debit the fixed asset and credit Cash b. debit Rent Expense and credit Cash c. debit a liability and credit Cash d. be a memo entry only
In a common-sized income statement, 100% is the
a. net cost of goods sold b. net income c. gross profit d. sales
Your professor is very enthusiastic about the topic and has a tendency of talking with her hands. The gestures are sometimes helpful, but often very distracting. This is an example of a ______ distraction.
a. situational b. source c. medium d. bias
Deferred policy acquisition costs represent the cost of obtaining policies. Under statutory accounting practices, these costs are charged to expense as they are incurred
Indicate whether the statement is true or false