Debit and credit can be interpreted to mean
A)"bad" and "good," respectively.
B)increase and decrease, respectively.
C)decrease and increase, respectively.
D)either an increase or decrease depending on the account.

Question

Quizplus · Accepted Answer

Debit and credit in accounting do not inherently mean "good" or "bad," nor do they strictly mean "increase" or "decrease." Instead, their effect (increase or decrease) depends on the type of account they are applied to. For example, debiting an asset account increases its balance, while debiting a liability account decreases its balance. Similarly, crediting an asset account decreases its balance, while crediting a liability account increases its balance.

Debit and Credit Can Be Interpreted to Mean