Debit and Credit Rules in Accounting
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Questions and Answers

What are the primary and fundamental principles of the modern double-entry accounting system?

  • Debit and credit (correct)
  • Profit and loss
  • Assets and liabilities
  • Income and expenses
  • In the modern double-entry accounting system, which principle is used to record financial transactions?

  • Assets and liabilities
  • Expenses and revenue
  • Debit and credit (correct)
  • Cash flow and liquidity
  • Which principles form the basis of the modern double-entry accounting system for recording financial transactions?

  • Debit and credit (correct)
  • Sales and purchases
  • Equity and debt
  • Income and expenditure
  • In the modern double-entry accounting system, which principle is used to record an increase in assets?

    <p>Debit</p> Signup and view all the answers

    When recording a decrease in liabilities in the modern double-entry accounting system, which principle is applied?

    <p>Credit</p> Signup and view all the answers

    Which principle in the modern double-entry accounting system is used to record an increase in owner's capital?

    <p>Credit</p> Signup and view all the answers

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