A T-account is a device or convention for organizing and accumulating the accounting entries of transactions that affect an individual account. Which of the following is/are true?
A)Increases in assets appear on the left side, and decreases in assets appear on the right side of T-accounts.
B)Increases in liabilities appear on the right side, and decreases in liabilities appear on the left side of T-accounts.
C)Increases in shareholders' equity appear on the right side, and decreases in shareholders' equity appear on the left side of T-accounts
D)all of the above are true
E)none of the above are true

Question

Quizplus · Accepted Answer

All the statements are true regarding the rules of recording in T-accounts: increases in assets are recorded on the left side (debit), while decreases are on the right side (credit). For liabilities and shareholders' equity, increases are recorded on the right side (credit), and decreases on the left side (debit).

A T-Account Is a Device or Convention for Organizing and Accumulating