Which of the following is not a correct rule of debits and credits?
A) Assets, expenses, and dividends are increased by debits.
B) Assets are decreased by credits and have a normal debit balance.
C) Liabilities, revenues, and stockholders' equity are increased by credits.
D) The normal balance for revenues and expenses is a credit.

Question

Quizplus · Accepted Answer

The normal balance for revenues and expenses is actually the opposite. Revenues have a normal credit balance and expenses have a normal debit balance. Therefore, Option D is not a correct rule of debits and credits.

Which of the Following Is Not a Correct Rule of Debits