Which pair of accounts follows the rules of debit and credit in the opposite manner?
A)Prepaid Insurance and Dividends
B)Advertising Expense and Land
C)Dividends and Service Revenue
D)Interest Payable and Common Stock

Question

Quizplus · Accepted Answer

Dividends are debited when paid to stockholders and Service Revenue is credited when earned, which follows the normal rules of debit and credit. However, if Dividends were credited instead of debited, that would be the opposite of the normal rule of debit and credit. Similarly, if Service Revenue were debited instead of credited, that would also be the opposite of the normal rule. Therefore, the pair of accounts that follow the rules of debit and credit in the opposite manner are Dividends and Service Revenue.

Which Pair of Accounts Follows the Rules of Debit and Credit