Which of the following explains the debit and credit rules relating to the recording of revenue and expenses?

Question

Quizplus · Accepted Answer

This choice correctly identifies the debit/credit rules for revenue and expenses. Revenue increases owners' equity (a credit) while expenses decrease owners' equity (a debit). The other choices do not accurately describe the debit/credit rules for recording revenue and expenses. Option A and B refer to the balance sheet and income statement, respectively, but do not provide accurate information on the debit/credit rules. Option D describes overall accounting principles, but not specifically the debit/credit rules for recording revenue and expenses.

Which of the Following Explains the Debit and Credit Rules