Revenue Accounts Increase with a Debit and Decrease with a Credit

question 65

True/False

Revenue accounts increase with a debit and decrease with a credit.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that a company's bookkeeping system is mathematically correct.

Balance Sheet

A report detailing a company's financial status, including assets, liabilities, and equity of shareholders at a certain moment, which serves as a foundation for calculating returns and assessing the company's financial health.

Balancing

The act of ensuring that financial records or accounts are correct by making the total amounts of debits and credits equal.

Stockholders' Equity Account

represents the equity stake that shareholders have in a company, calculated as the company's total assets minus its total liabilities.