Regarding T-accounts,which of the following statements is correct?
A) A T-account is a more detailed form of an account in the journal.
B) The right side of a T-account is a debit for asset accounts and a credit for equity accounts.
C) Debits are posted on the right side of the vertical line.
D) A T-account is a summary device with credits posted on the right side of the vertical line.

Question

Quizplus · Accepted Answer

A T-account is a summary device with debits posted on the left side of the vertical line and credits posted on the right side. Option A is incorrect because a T-account is not a form of an account in the journal but a type of account used to summarize transactions. Option B is incorrect because the right side of a T-account is a credit for asset accounts and a debit for equity accounts. Option C is incorrect because debits are posted on the left side of the vertical line, not the right side.

Regarding T-Accounts,which of the Following Statements Is Correct