How many of the following statements regarding debits and credits are true?
A decrease in assets will result in a credit to an asset account.
Across all accounts, the total value of all debits must equal the total value of all credits.
The total value of all debits to a particular account must equal the total value of all credits to that account.
A) None
B) One
C) Two
D) Three

Question

Quizplus · Accepted Answer

The first statement is false - a decrease in assets will result in a debit to an asset account.
The second statement is true - this is the fundamental principle of double-entry accounting.
The third statement is true - every transaction must be balanced with equal debits and credits to maintain the accounting equation.

How Many of the Following Statements Regarding Debits and Credits