Answered

Which of the following is a true statement about debits and credits?
OA debit always increases an account balance.
OA credit is on the right side of an account.
OA debit is on the right side of an account.
OA credit always decreases an account balance.

Verified Answer :

GinnyAnswer

Final answer:

Debits increase account balances, credits are on the right side of an account, and credits decrease account balances.


Explanation:

A true statement about debits and credits:

  • Debit always increases an account balance: When a debit is made, it increases an asset or expense account or decreases a liability or net assets account.
  • Credit is on the right side of an account: Credits are always on the right side of the account entry and increase a liability or net assets account or decrease an asset or expense account.
  • Credit always decreases an account balance: Credits reduce asset or expense accounts or increase liability or net assets accounts.

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