Asked by Drayven Fenton on May 27, 2024
Verified
Debit means increase and credit means decrease for all accounts.
Decrease
A reduction in the size, amount, or rate of something.
Debit
An accounting entry that increases an asset or expense account, or decreases a liability or equity account, used in double-entry bookkeeping.
Credit
An accounting entry that either increases a liability or equity account, or decreases an asset or expense account.
- Gain an understanding of the roles of debits and credits in affecting account balances.
Verified Answer
SS
Serop StephanianMay 28, 2024
Final Answer :
False
Explanation :
This statement is incorrect. Debit and credit do not always mean increase or decrease. It depends on the account type and the account's normal balance. For example, in an asset account, debit means increase and credit means decrease. But in a liability account, credit means increase and debit means decrease.
Learning Objectives
- Gain an understanding of the roles of debits and credits in affecting account balances.