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sukesh rohith
on Nov 15, 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 increase liabilities and decrease assets.

Assets

Resources owned by a company that have economic value and can be converted into cash.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Debits

Entries in accounting that represent an increase in assets and expenses or a decrease in liabilities, equity, and revenue.

  • Understand the influence of transactions on the accounting equation.
  • Identify the principles of debits and credits in accounting.
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SERENA DESANTISNov 19, 2024
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