What Is the Difference Between Tracing and Following

question 18

Short Answer

What is the difference between tracing and following?

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Definitions:

Debit

An entry recorded on the left side of an account in double-entry bookkeeping that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Liability Account

An accounting record of obligations or debts that a company owes to others, typically outside of the company.

Increase

An upward adjustment or growth in value, quantity, or size.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest in the company.