In accordance with the rules of debit and credit, which of the following is true?
A) Debits increase assets.
B) Credits increase assets.
C) Debits increase both assets and retained earnings.
D) Credits increase both assets and liabilities.

Question

Quizplus · Accepted Answer

The rules of debit and credit state that debits increase assets and expenses, while credits decrease them. Therefore, option A is correct as it states that debits increase assets. Option B is incorrect as credits actually decrease assets. Option C is partially correct, as debits do increase retained earnings but not necessarily assets. Option D is incorrect as credits increase liabilities but not necessarily assets.

In Accordance with the Rules of Debit and Credit, Which