Asked by
Mc2000 Sweeny
on Nov 14, 2024Verified
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.
Verified Answer
AE
Learning Objectives
- Identify the normal balances of different account types.