Which term describes positive account changes recorded on the right side of an account?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Glencoe Entrepreneurship Finance Exam. Engage with flashcards, multiple-choice questions, hints, and explanations. Ready yourself for success!

Multiple Choice

Which term describes positive account changes recorded on the right side of an account?

Explanation:
In double-entry accounting, the right side of a T-account holds credits. The term for those right-side entries is credits. A credit entry represents a positive change in accounts like liabilities, equity, and revenue, while it decreases assets and expenses—depending on the account type. Journals (such as the general journal) are where transactions are recorded, not the side of an account.

In double-entry accounting, the right side of a T-account holds credits. The term for those right-side entries is credits. A credit entry represents a positive change in accounts like liabilities, equity, and revenue, while it decreases assets and expenses—depending on the account type. Journals (such as the general journal) are where transactions are recorded, not the side of an account.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy