Identify the Statement Below That Is Correct

question 235

Multiple Choice

Identify the statement below that is correct.

• A) The left side of a T-account is the credit side.
• B) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.
• C) The left side of a T-account is the debit side.
• D) Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts.
• E) Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts.

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Definitions:

Accounting Function

The process of recording, summarizing, analyzing, and reporting financial transactions of a business to oversight agencies, regulators, and the IRS.

Finance Function

The role within a company that encompasses tasks related to managing finances, including treasury, budgeting, and financial reporting.

Sale Of Product

Sale of product refers to the transaction in which a business sells its physical goods to a customer in exchange for payment.

Tax Savings

The amount of money that a person or company reduces from their tax obligation as a result of deductions, credits, or allowances.