Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 24)
Which statement accurately describes the relationship between debits and credits?
Debits and credits are always equal in every transaction.
Debits always increase account balances, while credits always decrease account balances.
Debits represent increases, and credits represent decreases.
The total of all debits must always be greater than the total of all credits.
Explanation
In double-entry bookkeeping, for every transaction, the total debits must equal the total credits.
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