"All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer

What will be an ideal response


This is not a correct statement. The double entry-system of accounting is a system of accounting in which every transaction affects at least two accounts. As transactions are analyzed and recorded, the rules of debits and credits keep the accounting equation in balance. Assets, expenses and dividends are increased with a debit and decreased with a credit. Liabilities, revenues, and common stock are increased with a credit and decreased with a debit.

Business

You might also like to view...

As Azi traveled across the state of Tennessee, he stopped and bought gas, a bottle of soda, and a bag of corn chips at a small store that he will probably never visit again. What type of transaction did Azi engage in when he made these purchases?

A. A modified rebuy exchange B. A straight rebuy exchange C. A functional relationship D. A partnering relationship E. A solo exchange

Business

Art is a 21-year-old full-time student. Art's support is provided as follows: Art48% Art's parents52% ? Assuming all other tests for dependency not mentioned are satisfied,  ?

A. Art is a qualifying child of his parents but is not a qualifying relative. B. Art is a qualifying relative of his parents but is not a qualifying child. C. Art is a qualifying child and a qualifying relative. D. Art is neither a qualifying child nor a qualifying relative.

Business

In the context of carbon footprint, emissions that occur outside a company's boundary,but over which it has some control,are classified as Scope 2 emissions.

Answer the following statement true (T) or false (F)

Business

Define knowledge management (KM), and briefly explain the process through which it is implemented within an organization

What will be an ideal response?

Business