Identify the statement below that is correct?
A)The left side of a T-account is the credit side.
B)Debits decrease asset and expense accounts,and increase liability,equity,and revenue accounts.
C)The left side of a T-account is the debit side.
D)Credits increase asset and expense accounts,and decrease liability,equity,and revenue accounts.
E)In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.

Question

Quizplus · Accepted Answer

The left side of a T-account is always the debit side. Debits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. The right side of a T-account is always the credit side. Credits increase liability, equity, and revenue accounts, and decrease asset and expense accounts. Choice A and D are incorrect because they confuse the left and right sides of a T-account. Choice B is partially correct but reverses the effects of debits and credits. Choice E is true but not relevant to determining the correct statement about T-accounts.

Identify the Statement Below That Is Correct