After Deciding Which Accounts Are Affected, the Next Step in Analyzing

question 38

True/False

After deciding which accounts are affected, the next step in analyzing a transaction is to determine to which categories the accounts belong.

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Definitions:

Credit Side

The side of an accounting ledger where increases in liabilities, income, and equity are recorded, as well as decreases in assets.

Debit Balance

An accounting entry that shows a company owes money or has an asset; it appears on the left side of a ledger.

Right Side

In accounting, typically refers to the credit side of a double entry bookkeeping system.

Asset Account

A financial account that tracks the value of assets owned by an individual, company, or entity.