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. in 50 words of fewer if possible please, thanl youuu :)
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. in 50 words of fewer if possible please, thanl youuu :)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
in 50 words of fewer if possible please, thanl youuu :)
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