2-The T-account is used to summarize which of the following?
2 points
(a) Increase and decrease to a single account in the accounting system
(b) Debit and credit to a single account in the accounting system
(c) Changes in specific account balances over a time period
(d) All of the above describe how T-accounts are used by accountants
Answers
Answer:
(b)Debit and credit to a single Account in the accounting system
Answer:
(b) Debit and credit to a single account in the accounting system
Explanation:
Debits and credits in the double-entry bookkeeping are entries made in the account ledgers to record changes in value resulting from the business transactions. A debit entry in an account represents a transfer of value to the account, and a credit entry represents a transfer from account.[Each transaction transfers value from the credited accounts to debited accounts. For example, a tenant who writes a rent cheque to the landlord would enter a credit for bank account on which cheque is drawn, and a debit in a rent expense account. Similarly, landlord would enter a credit in rent income account associated with tenant and a debit for bank account where cheque is deposited.
Debits and credits are traditionally distinguished by the writing the transfer amounts in separate columns of an account book. Alternately, they can do listed in one column, indicating debits with suffix "Dr" or writing them plain, and indicating credits with suffix "Cr" or a minus sign. Despite use of a minus sign, debits and credits do not correspond directly to the positive and negative numbers. When total of debits in an account exceeds total of credits, account is said to have a net debit balance equal to difference; when the opposite is true, it has a net credit balance. For a particular account, one of these will be normal balance type and will be reported as the positive number, while a negative balance will indicate an abnormal situation, as when the bank account is overdrawn. Debit balances are normal for the asset and expense accounts, and credit balances are normal for liability, equity and revenue accounts.
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