Multiple choice

Which is incorrect?

  1. Dr. the receiver, Cr. the giver

  2. Dr. what comes in, Cr. what goes out

  3. Dr all the income, Cr. all expenses/losses

  4. All the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The golden rules of accounting state that for nominal accounts, you must debit all expenses and losses and credit all incomes and gains. Option C is incorrect because it suggests the exact opposite: debiting income and crediting expenses.

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