Which of the following statements about the debit/credit framework is correct?
A. The Common Stock account is increased by debits.
B. All asset accounts have a normal debit balance with the exception of cash, which has a normal credit balance.
C. When payment is made on a liability such as accounts payable, the liability account is decreased with a debit.
D. The total amount of asset accounts must equal the total amount of liability accounts minus the total amount of stockholders' equity accounts.
Answer: C
You might also like to view...
The smoothing constants in exponential smoothing models are effectively a way to assign different weights to past levels, trends and cycles in the data
a. True b. False Indicate whether the statement is true or false
Limitations of air carrier transport include cost and airport accessibility
a. True b. False Indicate whether the statement is true or false
If we want to model a random stock price, we should do so with an unbounded symmetric probability distribution.
Answer the following statement true (T) or false (F)
The World Trade Organization and GATT helped reduce international trade barriers after World War II
Indicate whether the statement is true or false