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)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 the debit side, and the right side is the credit side. Therefore, statement A and D are incorrect. Statement B is partially correct in stating that debits decrease asset and expense accounts and increase liability accounts, but it is incorrect in stating that debits increase equity and revenue accounts. Finally, statement E is incorrect because the total debited amount must always equal the total credited amount in accounting to maintain the fundamental accounting equation.

Identify the Statement Below That Is Correct