Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What do the terms debit and credit mean? Question content area bottom Part 1 A . The terms debit and credit simply mean left and
What do the terms debit and credit mean?
Question content area bottom
Part
A
The terms debit and credit simply mean left and right and do not imply increase or decrease. Account changes resulting from debiting or crediting an account can only be determined if we know the type of accountasset liability, revenue, expense, etc. and the rules of debits and credits for that account. Debiting an account simply means entering a numerical value on the left side, and crediting an account will result in entering a value on the right side.
B
The terms debit and credit simply mean increase and decrease. Debiting an account simply means increasing the numerical value, and crediting an account will result in decreasing the value. Debits must always equal credits.
C
The terms debit and credit simply mean left and right and do not imply increase or decrease. Account changes resulting from debiting or crediting an account can only be determined if we know the type of accountasset or liability and the rules of debits and credits for that account. Debiting an account simply means entering a numerical value on the right side, and crediting an account will result in entering a value on the left side.
D
The terms debit and credit simply mean left and right and implies increase or decrease. Account changes resulting from debiting or crediting an account can only be determined if we know the type of accountasset liability, revenue, expense, etc. and the rules of debits and credits for that account. Debiting an account simply means entering a numerical value on the left side, and crediting an account will result in entering a value on the right side.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started