Ask Question
BusinessBusiness
22 December, 00:53

Which of the following rules is incorrect?

a. Credits increase revenue accounts.

b. Debits increase the common stock account.

c. Debits decrease liability accounts.

d. Credits decrease the dividends account.

+4
Answers (1)
  1. 22 December, 01:43
    0
    b. Debits increase the common stock account.

    d. Credits decrease the dividends account.

    Explanation:

    As per the general rule, the revenues are always credited, therefore a credit to revenue will increase the revenues.

    Common stock account always shows the credit balance, thus, whenever there is a debit to common stock account it will decrease the balance.

    Liability accounts also show a credit balance therefore, with every debit to liabilities account the liabilities will be decreased.

    Dividends are credited against retained earnings, and thus if they are credited even again then they tend to increase.

    Therefore, incorrect statements are:

    b. Debits increase the common stock account.

    d. Credits decrease the dividends account.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following rules is incorrect? a. Credits increase revenue accounts. b. Debits increase the common stock account. c. Debits ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which is not a common product marketing techniques? A.) pricing B.) packaging C.) placement D.) preparation
Answers (1)
Economists use the word equality to describe a situation in which a. each member of society has the same income. b. each member of society has access to abundant quantities of goods and services, i. regardless of his or her income. c.
Answers (1)
Who did publisher Henry Luce credit with the provision of "the abundant life" in his blueprint for postwar prosperity, The American Century? a. Returning veterans. b. Labor unions. c. The Department of Defense. d. Free enterprise. e.
Answers (1)
Cash Sales Credit Sales January $ 50,000 $ 150,000 February $ 55,000 $ 170,000 March $ 43,000 $ 130,000 April $ 38,000 $ 123,000 May $ 48,000 $ 200,000 June $ 80,000 $ 170,000 The company is in the process of preparing a cash budget and must
Answers (1)
What is an auditor's evaluation of a statistical sample for attributes when a test of 50 documents results in 3 deviations if the tolerable rate is 7%, the expected population deviation rate is 5%, and the allowance for sampling risk is 2%?
Answers (1)
New Questions in Business
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $700,000 and sold the bonds on January 3, 2019, for $702,000.
Answers (1)
Why might the cartel model still make sense even when OPEC produces less than half of the world's oil?
Answers (1)
Your best friend says they don't think insurance is important. Explain to them why it is important to have insurance. How is having insurance important for successful financial management?
Answers (1)
As a smart customer you are always on the lookout for sales coupons and rebates while shopping for new clothes you notice that one particular brand of shirts is on sale for 20% off the original price you also h e a coupon for 10$ off a 40$ purchase
Answers (1)
Jester Corporation's most recent income statement appears below: Income Statement Sales (all on account) $ 230,000 Cost of goods sold 135,000 Gross margin 95,000 Selling and administrative expense 43,000 Net operating income 52,000 Interest expense
Answers (1)
Home » Business » Which of the following rules is incorrect? a. Credits increase revenue accounts. b. Debits increase the common stock account. c. Debits decrease liability accounts. d. Credits decrease the dividends account.
Sign Up Forgot Password?