How many of the following statements regarding the debit/credit processing of revenues and expenses are true?
Debits reduce expenses.
The total credits recorded in revenue accounts must equal the total debits recorded in expense accounts.
Across all revenue accounts, the total value of all debits must equal the total value of all credits.
A) None
B) One
C) Two
D) Three

Question

Quizplus · Accepted Answer

Debits increase expenses, not reduce them. The total credits in revenue accounts do not need to equal the total debits in expense accounts. In revenue accounts, credits increase revenue, and debits decrease it, but they do not need to be equal.

How Many of the Following Statements Regarding the Debit/credit Processing