Multiple Choice
The left side of an account is used to record which of the following?
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2. Transaction Analysis
Journal Entries: Debits and Credits
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following best describes a debit in the context of journal entries?
A
A field that uniquely identifies a record in a database table.
B
A summary of all transactions affecting a particular account.
C
An entry on the left side of an account that increases assets or expenses and decreases liabilities or equity.
D
An entry on the right side of an account that increases liabilities or equity and decreases assets or expenses.
Verified step by step guidance1
Understand the concept of a debit in accounting: A debit is an entry made on the left side of a ledger account. It is used to record increases in asset and expense accounts, and decreases in liability, equity, or revenue accounts.
Review the structure of a journal entry: Journal entries consist of debits and credits. Debits are always recorded on the left side, while credits are recorded on the right side.
Analyze the options provided in the problem: Eliminate choices that do not align with the definition of a debit. For example, the option describing a field in a database table is unrelated to accounting.
Focus on the correct description of a debit: A debit increases assets or expenses and decreases liabilities or equity. This aligns with the fundamental accounting equation and double-entry bookkeeping principles.
Confirm the correct answer: The correct description of a debit is 'An entry on the left side of an account that increases assets or expenses and decreases liabilities or equity.'
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