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State the rules of debit and credit as applied to the following accounts. Accounts Rule of debit & credit (a) Asset accounts choose a rule
State the rules of debit and credit as applied to the following accounts.
| Accounts | Rule of debit & credit | ||||
|---|---|---|---|---|---|
| (a) | Asset accounts | choose a rule of debit and credit Increased by Debits and Decreased by Credits or Decreased by Debits and Increased by Credits | |||
| (b) | Liability accounts | choose a rule of debit and credit Decreased by Debits and Increased by Credits or Increased by Debits and Decreased by Credits | |||
| (c) | Common Stock account | choose a rule of debit and credit Increased by Debits and Decreased by Credits or Decreased by Debits and Increased by Credits |
Genesis Company buys equipment for $900 on credit. This transaction will immediately affect the
| A. | income statement only. |
| B. | income statement, retained earnings statement, and balance sheet. |
| C. | balance sheet only. |
| D. | income statement and retained earnings statement only. |
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