Debit means increase and credit means decrease for all accounts.

Question

Quizplus · Accepted Answer

This statement is incorrect. Debit does not always mean increase and credit does not always mean decrease. It depends on the type of account and the transaction being recorded. In some accounts, such as assets and expenses, debit means increase and credit means decrease. In other accounts, such as liabilities, equity, and revenue, credit means increase and debit means decrease.

Debit Means Increase and Credit Means Decrease for All Accounts