One of your best friends has just started an accounting course at university. After his first lesson
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Question:
One of your best friends has just started an accounting course at university. After his first lesson on ‘double-entry accounting’, your friend approaches you and says: “I don’t understand why the banks use the term ‘credit’ when you deposit cash in your bank account because cash is an asset, and increase in cash should be ‘debit’, not ‘credit’. I think the banks are misusing the word ‘credit’. It doesn’t comply with double-entry accounting.”
Do you agree with your friend? Explain.
Expert Answer:
No I dont agree with my friend The bank is using the word credit rightly and complying with doublee... View the full answer
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