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

I) Total debits should equal total credits. This is true and is known as the fundamental accounting equation.
II) It is possible to have multiple debits or credits in one journal entry. This is also true since a journal entry can involve multiple accounts and amounts.
III) Assets are not always listed first in journal entries. Sometimes liabilities or equity accounts may be listed first depending on the nature of the transaction.
IV) Some journal entries will have debits only. This is true as some transactions may only involve one account being debited, such as recording depreciation expense.

The Following Statements Pertain to Recording Transactions