In accounting, which of the following statements is true regarding the terms debit and credit?
In accounting, which of the following statements is true regarding the terms debit and credit?
In accounting, debit (often abbreviated as 'Dr') indicates the left side of an account while credit (abbreviated as 'Cr') indicates the right side. This is a fundamental aspect of the double-entry bookkeeping system. Therefore, the correct statement is that credit indicates the right side of an account and debit the left side.
B is not correct.a debit increases the balance of an asset, expense, or loss account and decreases the balance of a liability, equity, revenue, or gain account. Conversely, a credit increases the balance of a liability, equity, gain, or revenue account and decreases the balance of an asset, loss, or expense account.