Debits are good and credits are bad in financial terms.

Name: Debits are good and credits are bad in financial terms.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is false. In financial terms, a debit simply means an entry that increases an asset or expense account, while a credit means an entry that increases a liability or equity account. Both debits and credits are necessary for a balanced accounting system and neither one is inherently "good" or "bad."

Debits Are Good and Credits Are Bad in Financial Terms