The debit (left)side of an account always indicates an increase in the value of the account.

Question

Quizplus · Accepted Answer

The debit side of an account can indicate either an increase or a decrease in value, depending on the type of account and the specific transaction. For example, in an asset account, a debit entry would increase the value of the account, while in a liability account, a debit entry would decrease the value of the account. Similarly, in an expense account, a debit entry would increase the amount of money spent, while in a revenue account, a debit entry would decrease the amount of money earned. Therefore, the statement that the debit side always indicates an increase in value is incorrect.

The Debit (Left)side of an Account Always Indicates an Increase