A T-account is a device or convention for organizing and accumulating the accounting entries of transactions that affect an individual account. Which of the following is/are true?
A)Increases in assets appear on the left side, and decreases in assets appear on the right side of T-accounts.
B)Increases in liabilities appear on the right side, and decreases in liabilities appear on the left side of T-accounts.
C)Increases in shareholders' equity appear on the right side, and decreases in shareholders' equity appear on the left side of T-accounts.
D)All of the above are true.
E)None of the above are true.

Question

Quizplus · Accepted Answer

All the statements are true regarding the rules of recording in T-accounts: increases in assets are recorded on the left side (debit), while decreases are on the right side (credit); for liabilities and shareholders' equity, increases are recorded on the right side (credit), and decreases on the left side (debit).

A T-Account Is a Device or Convention for Organizing and Accumulating