Asked by Lidya Angelita on Mar 10, 2024
Verified
To determine the balance in an account, always subtract credits from debits.
Credits
In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet, corresponding to the double-entry bookkeeping system.
Debits
Entries made on the left-hand side of an account record in double-entry bookkeeping, indicating increases in assets or expense accounts, or decreases in liabilities, equity, or revenue accounts.
Account Balance
The amount of money present in a financial account at any given moment, which can be positive (credits) or negative (debits).
- Comprehend the fundamental concepts behind documenting financial activities.
- Acquire knowledge about the function of debits and credits and their effect on account balances.
Verified Answer
Learning Objectives
- Comprehend the fundamental concepts behind documenting financial activities.
- Acquire knowledge about the function of debits and credits and their effect on account balances.
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