Home » IIA » IIA-CIA-Part3 » Which of the following statements is true regarding the terms debit and credit?
In accounting, which of the following statements is true regarding the terms debit and credit?
A. Debit indicates the right side of an account and credit the left side.
B. Debit means an increase in an account and credit means a decrease.
C. Credit indicates the right side of an account and debit the left side.
D. Credit means an increase in an account and debit means a decrease.
Correct Answer: B
Explanation/Reference:
Explanation:
Reference: https://www.accountingtools.com/articles/2017/5/17/debits-andcredits#:~:text=For%20example%2C%20if%20you%20debit,of%20accounts%20payable%20liability%20decreases.&text=A%20debit%20increases%20the%20balance,Liability%20accounts
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I think the right answer is D.