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Mc2000 Sweeny
on Nov 14, 2024

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Which of the following statements is true?

A) Debits increase assets and increase liabilities.
B) Credits decrease assets and decrease liabilities.
C) Credits decrease assets and increase liabilities.
D) Debits decrease liabilities and decrease assets.

Liabilities

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Debits

Accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet.

  • Identify the normal balances of different account types.
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Annapres EspirituNov 20, 2024
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