Which term describes negative account changes recorded on the left side of a T-account?

• A. Credits
• B. General journal
• C. Accrual basis
• D. Debits

Answer: (D)

In double-entry accounting, the left-hand side of a T-account is the debit side, and the entries there are called debits. Debits describe the changes recorded on that side, and they typically reflect increases in assets and expenses or decreases in liabilities, equity, and revenue. For example, when you incur an expense, you debit the expense account on the left to show the increase, while credits would go to cash or accounts payable on the right. Conversely, paying down a liability would also be recorded with a debit on the left to reduce the liability. So the term that describes those left-side, or “negative” side, changes is debits. The other options don’t fit because a general journal is the book of original entry, accrual basis is a method of accounting, and neither name the left-side entries.