Asked by Elizabeth Welch on Apr 27, 2024
Verified
The increase side of an account is also the side of the normal balance.
Increase Side
Refers to the side (debit or credit) of an account that is used to increase its balance, varying by account type.
Normal Balance
The side (debit or credit) on which increases are recorded in an accounting ledger; varies depending on the account type (asset, liability, equity, revenue, or expense).
- Familiarize oneself with the basic notions of debits and credits in the context of financial transactions.
Verified Answer
KS
Kevin StudioMay 03, 2024
Final Answer :
True
Explanation :
The increase side of an account is always the side where debits or credits are recorded depending on the account type. For example, in an asset account, the increase side is where debits are recorded and in a liability account, the increase side is where credits are recorded. These sides are also known as the normal balance for each account type.
Learning Objectives
- Familiarize oneself with the basic notions of debits and credits in the context of financial transactions.