Which of the following statements regarding debits and credits is always true?
A)Debits decrease accounts while credits increase them.
B)The total value of all debits recorded in the ledger must equal the total value of all credits recorded in the ledger.
C)The total value of all debits to a particular account must equal the total value of all credits to that account.
D)A debit balance of $500 in the cash account means that cash receipts exceeded cash payments by $500.

Question

Quizplus · Accepted Answer

The accounting equation states that assets equal liabilities plus equity, and because every transaction must affect at least two accounts, the total value of all debits must always equal the total value of all credits for an accounting system to be in balance. The other statements may be true in certain situations, but they are not always true.

Which of the Following Statements Regarding Debits and Credits Is