Increases in Assets Involve Debits and Increases to Equity and Liabilities

question 17

True/False

Increases in assets involve debits and increases to equity and liabilities involve credits under a ledger-based approach to recording transactions.

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Definitions:

Prejudgment Remedy

A legal measure obtained before a court's final decision to secure assets or interests, ensuring satisfaction of a potential judgment.

Debtor

An individual or entity that owes money or has a financial obligation to another party, known as the creditor.

Mortgage

A written instrument that gives a creditor (the mortgagee) an interest in, or lien on, the debtor’s (mortgagor’s) real property as security for a debt. If the debt is not paid, the property can be sold by the creditor and the proceeds used to pay the debt.

Creditor

An individual, institution, or entity that lends money or extends credit, expecting to be repaid.