Vidyalelo
Commerce · Q404

Accounting

Graduate and Post Graduate · Commerce · question 404

Q404

The left side of an account is known as ___ and the right side as ____

A.
Debit, Credit
Answer
B.
Credit, Debit
C.
Liability, Asset
D.
None of the above

Answer: Option A

Solution

Answer: Option A
Solution:
The left side of an account is known as Debit and the right side as Credit. Asset accounts such as Cash, Accounts Receivable, Inventory, and Equipment should have debit balances. Liabilities are on the right side of the accounting equation.