An Important Rule to Remember When Working with T Accounts

question 107

Multiple Choice

An important rule to remember when working with T accounts is:

• A)when you debit an account,you are entering an amount of the right-hand side on the T account.
• B)an increase to accounts payable will be recorded as a debit.
• C)to credit an account means to enter an amount on the right-hand side of the T account.
• D)the debit side of a T account is on the right-hand side of the T account for assets and expenses.

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Definitions:

Mental Accounting

The tendency of individuals to allocate and segregate their personal finances into separate accounts based on subjective criteria, often leading to irrational financial decision-making.

Technical Trading Strategies

Methods used by traders that rely on technical analysis and market indicators to make buy or sell decisions.

True Trend

The authentic direction in which a market or a stock's price is moving over a specific time period.

Moving Average

A statistical measure that smooths out price data by creating a constantly updated average price over a specific period of time.