Would you please remind me how the debits and credits system works? Why do the assets get debit increased and the liabilities and owner’s equity get debit decreased? I know the parts must balance and clear each other out, but reviewing my notes from a previous class, I’m having a hard time getting a perspective on the principle of the T-balance.
Would you please remind me how the debits and credits system works? Why do the assets get debit increased and the liabilities and owner’s equity get debit decreased? I know the parts must balance and clear each other out, but reviewing my notes from a previous class, I’m having a hard time getting a perspective on the principle of the T-balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Would you please remind me how the debits and credits system works? Why do the assets get debit increased and the liabilities and owner’s equity get debit decreased? I know the parts must balance and clear each other out, but reviewing my notes from a previous class, I’m having a hard time getting a perspective on the principle of the T-balance.
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