Which of the following statements about the debit/credit framework is correct?
A)Stockholders' Equity = Assets + Liabilities.
B)The total value of credits in all accounts must always equal the total value of debits in all accounts.
C)The normal balance for an account is the side on which it decreases.
D)A decrease in Common Stock would be recorded with a credit.

Question

Quizplus · Accepted Answer

The double-entry system requires that debits = credits.The accounting equation is: Assets = Liabilities + Stockholders' Equity (or Stockholders' Equity = Assets − Liabilities).Assets normally end with a debit balance (because debits to assets normally exceed credits)and liabilities and stockholders' equity accounts normally end with credit balances (credits exceed debits).An increase (rather than a decrease)in Common Stock would be recorded with a credit.

Which of the Following Statements About the Debit/credit Framework Is