ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit
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Debit
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Either A or B
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None of the above
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Detailed explanation-1: -Debits increase asset, expense, and dividend accounts, while credits decrease them. Credits increase liability, revenue, and equity accounts, while debits decrease them.
Detailed explanation-2: -The UGAFMS (PeopleSoft) system identifies positive amounts as DEBITS and negative amounts as CREDITS. Each account has a debit and credit side, but as you can see, not every account adds on the debit side or subtracts on the credit side.
Detailed explanation-3: -When your bank account is debited, money is taken out of the account. The opposite of a debit is a credit, in which case money is added to your account. Your account is debited in many instances.
Detailed explanation-4: -Typically, when reviewing the financial statements of a business, Assets are Debits and Liabilities and Equity are Credits.