An important rule in a double-entry accounting system includes: a. Increases in equity accounts always result in
Question:
An important rule in a double-entry accounting system includes:
a. Increases in equity accounts always result in a decrease to a liability account
b. Equity accounts and liability accounts are always credited, assets are always debited
c. Liabilities are always decreased through a debit to equity
d. Increases in assets are debited to asset accounts, decreases in assets are credited to asset accounts
Step by Step Answer:
d Increases in asset...View the full answer
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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The accounting equation is a formula that shows the sum of a company\\\'s liabilities and shareholders\\\' equity are equal to its total assets (Assets = Liabilities + Equity). The clear-cut relationship between a company\\\'s liabilities, assets, and equity is the backbone of double-entry bookkeeping.
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