Which of the following statements regarding credit entries is true?
A. Credits decrease liability accounts.
B. Credits increase asset and common stock accounts, and decrease liability accounts.
C. Credits increase the common stock account.
D. Credits increase asset accounts.
Answer: C
You might also like to view...
If a calculator company produces 100,000 hand calculators at a cost of $10, but the cost drops to $9 when it produces 200,000 and $8 when it produces 400,000 hand calculators, the decline in average cost with accumulated product experience is called
the price elasticity of demand. Indicate whether the statement is true or false
In preparing the overhead budget, many companies use:
A) activity-based costing. B) multiple drivers for a simple budget. C) a unit-based driver such as direct labor hours. D) participative costing. E) none of these.
If an activity cannot be shortened, then ______.
a. the crashing costs are equal to the average of the crashing costs for other activities b. no crashing cost can be calculated c. both A and B d. neither A nor B
Paper payable "on demand" fails the test of negotiability in that it does not contain a specific time
a. True b. False Indicate whether the statement is true or false