The Credit Side of the T Account Records

question 21

Multiple Choice

The credit side of the T account records:

• A) Increases in assets and expenses.
• B) Increases in income, liabilities and capital.
• C) Decreases in income and expenses.
• D) Decreases in assets, liabilities and capital.

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Definitions:

Credit Item

An entry that increases the balance of a firm's or individual's account in financial statements.

Balance of Payments

A record of all financial transactions made between a country and the rest of the world over a specific period.

Debit

A financial record that leads to a rise in assets or a reduction in liabilities on a corporation's balance sheet.

Balance of Payments

The balance of payments is a comprehensive record of a country's economic transactions with the rest of the world, including trade, investments, and financial transfers, over a specific time period.