Which of the following is/are true regarding T-accounts?
A)for each transaction, the amount entered on the left side of (or debited to) the accounts for each transaction equals the amount entered on the right side of (or credited to) the accounts.
B)recording equal amounts of debits and credits for each transaction ensures that the balance sheet equation will always balance.
C)one side of the space formed by the vertical line records increases in the item and the other side records decreases.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the options are true regarding T-accounts. T-accounts are used in accounting to visualize account balances and transactions. The left side is used to record debits (increases in assets or decreases in liabilities) and the right side for credits (decreases in assets or increases in liabilities). For each transaction, the total debits must equal the total credits to ensure that the balance sheet equation (assets = liabilities + equity) remains balanced.

Which of the Following Is/are True Regarding T-Accounts