Identify the Statement Below That Is Correct

question 78

Multiple Choice

Identify the statement below that is correct?

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

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company assets.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the company.

Deferred Expenses

Assets created when purchased in the past before being used to generate revenues; need to be adjusted at the end of the period to reflect the amount of expense incurred by using the assets over time.

Assets

Resources owned or controlled by a business, entity, or individual, which are expected to produce economic value or future benefits.