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.
A)I only.
B)I and II.
C)I,II,and IV.

Question

Quizplus · Accepted Answer

I. Total debits should equal total credits because every transaction affects at least two accounts and the total amount debited from all accounts must equal the total amount credited to all accounts. 
II. It is possible to have multiple debits or credits in one journal entry. For example, a cash sale could result in multiple credits to revenue accounts and debits to cash and inventory accounts. 
III. Assets are not always listed first in journal entries. The accounts listed first in a journal entry depend on the accounts affected by the transaction. 
IV. Some journal entries will have debits only, for example, a debit to an expense account to record the payment of an expense.

The Following Statements Pertain to Recording Transactions