BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
102 views

Which of the following statements is false?

  1. The left side of a T-account is called the credit side.
  2. All T-accounts have both a debit and a credit side.
  3. Transactions are frequently analyzed using a T-account.
  4. The amount in an account at any time is called the balance of the account.

To determine

Introduction: T account is a fundamental tool in double entry accounting which shows the effect of a transaction on two sides that is dual effect. Since this account is a ‘T’ shape account, so it is also known as T account where left side is referred as debit side and right side as credit side. A ‘normal balance’ in the account is assigned based on increases and decreases in the account. Assets, expenses and owner’s drawings have a normal debit balance while liabilities, revenue and stock holder’s equity have a normal credit balance.

To select- The false statement related to ‘T’ account.

Explanation

Explanation for correct answer- A ‘T’ account shows the effect of a financial transaction on two sides or a dual effect which is a ‘T’ shape account where left side of the ‘T’ is referred as debit side and the right side is known as credit side of account. Thus, the statement that left side of the T-account is credit side is incorrect.

Explanation for incorrect answer-

Option B- All T-accounts have both a debit and a credit side. This is a correct statement because all T-account have two sides left side which is debit and right side which is credit side...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

List and discuss three key facts about economic fluctuations.

Principles of Macroeconomics (MindTap Course List)

What are problems associated with each one?

Foundations of Business (MindTap Course List)

How can hole depth be controlled during drilling operations?

Precision Machining Technology (MindTap Course List)

If it takes a bicyclist 25 seconds to reach a speed of 10 mph from rest, what is her acceleration? For the next...

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

What activities are encompassed by supply chain management?

Principles of Information Systems (MindTap Course List)

What is a DBMS? Briefly describe the components of a DBMS.

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

When might you choose to use a database instead of a spreadsheet? (170)

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)