Which of the following statements 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) In certain circumstances 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. This is a basic principle in accounting. Option A is incorrect as the left side of a T-account is the debit side, not the credit side. Option B is incorrect as debits increase asset and expense accounts and decrease liability, equity and revenue accounts. Option D is incorrect as credits increase liability, equity and revenue accounts and decrease asset and expense accounts. Option E is incorrect as the total amount debited always equals the total amount credited in double-entry accounting.

Which of the Following Statements Is Correct