Question: Explain why the rules for debit and credit are the same for Liabilities and Owner's Equity Accounts?

Explain why the rules for debit and credit are the same for Liabilities and Owner's Equity Accounts? 

Step by Step Solution

★★★★★

3.43 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Liability Accounts Another word for liability is debt Liabilities are what the company owes to other... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

68-B-A-F-S (2883).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Explain why the rules of debit and credit are the same for liability accounts and owners equity accounts.

Q:

The words debit and credit are used in two ways in accounting: ''e.g., to debit an account'' and ''a debit balance.'' Explain both usages of the terms debit and credit.

Q:

The words debit and credit are used in two ways in accounting: ''to debit an account'' and ''a debit balance.'' Explain both usages of the terms debit and credit.

Q:

I need help . Full answer and Solution please PLAYING THE ACCOUNTING EQUATION 1. Naruto Uzumaki is an owner of Konoha Enterprises, a sole proprietorship. The company's total assets is PhP726,000. The...

Q:

need help plz for accounting need help with all of these plz for accounting need help with these 4 questions plz for accounting Journalizing and Posting On February 11, 20Y9, Quick Fix Company...

Q:

Calculator Journalizing and posting Chart of Accounts Journal Ledger Final Question Instructions On February 11, 2049, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fix's chart...

Q:

Baker Construction is a small corporation owned and managed by Tom Baker. The corporation has 21 employees, few creditors, and no investor other than Tom Baker. Thus, like many small businesses, it...

Q:

1 1. What is the difference between an account and a ledger? 2. Do the terms debit and credit signify an increase or a decrease, or can they signify either? Explain. 3. Explain why the rules of debit...

Q:

The drawing shows a collision between two pucks on an air-hockey table. Puck A has a mass of 0.0170 kg and is moving along the x axis with a velocity of +4.65 m/s. It makes a collision with puck B,...

Q:

Activity 1: Identifying and recording a business transaction using the General Journal Below is an example of business transactions of a service type business. You are task to record the said...

Q:

1. Write an SQL statement to display columns Id, Name, and Population from the city table and limit results to the first 10 rows only. 2. Write an SQL statement to display columns Id, Name, and...

Q:

Process-Oriented Problem 02.006.d - Magnitude of Force Vector Given the following force vectors, what is the magnitude of force in cable DA? (i.e. what is || F DA||?) = 15.03 45.09 + 37.57k (lb)...

Q:

BE2.3 (LO 2, 3) On July 1, 2025, Crowe NV pays 15,000 to Zubin Insurance for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Crowe NV journalize the entry on July...

Q:

Authority without responsibility is dangerous. Substantiate.

Q:

For its fabricated metal products, the Able Corp. is buying $10,000 of special tools that have a 4-year useful life and no salvage value . Compute the depreciation charge for the second year by each...

Q:

Use MACRS GDS depreciation for each of the assets, 1-3, to calculate the following items, (a)-(c). 1. A light general-purpose truck used by a delivery business, cost = $17,000.? 2. Production...

Q:

On July 1 Nancy Regan paid $600,000 for commercial building and an additional $150,000 for the land on which it stands. Four years later, also on July 1, s be sold the property for $850,000. Compute...

Q:

Suppose you have just bought a new house and are considering the of compact fluorescent bulb (CFB) fixtures instead of the 10 conventional incandescent lighting fixtures (which cost total of...

Q:

_ After COVE-19, the Clayton campus has turned into a postapocalyptic corrupt world where lecturers and students have to gamble to stay alive. Clayton campus has become Clayton lCasino. You attend...

Q:

How much would $10,000 due in 100 years be worth today if the discount rate were 10%? A. $0.73 B. $1.21 D. $4.83 E. $6.30 You have saved $5,000 for a down payment on a new car. The largest monthly...