The following statements pertain to recording transactions.Which of them are true? I.Total debits should equal total credits.
II)It is possible to have multiple debits or credits in one journal entry.
III)Assets are always listed first in journal entries.
IV)Some journal entries will have debits only.

Question

Quizplus · Accepted Answer

Statement I is true because the fundamental principle of accounting is that the total debits should always be equal to the total credits. Statement II is also true because in some cases, one transaction may require multiple debits or credits. Statement III is false because the order in which accounts appear in journal entries is not based on their classification, but rather on the order in which they are affected by the transaction. Statement IV is also true because some transactions may only require a debit entry or a credit entry, depending on the account affected. Therefore, the best choice is B, which includes statements I and II.

The Following Statements Pertain to Recording Transactions