Which term describes positive account changes recorded on the right side of an account?

Master Glencoe Entrepreneurship Finance Exam. Enhance your skills with detailed questions and comprehensive explanations. Prepare with confidence for success!

Multiple Choice

Which term describes positive account changes recorded on the right side of an account?

Explanation:
In double-entry accounting, the right side of a T-account holds credits. The term for those right-side entries is credits. A credit entry represents a positive change in accounts like liabilities, equity, and revenue, while it decreases assets and expenses—depending on the account type. Journals (such as the general journal) are where transactions are recorded, not the side of an account.

In double-entry accounting, the right side of a T-account holds credits. The term for those right-side entries is credits. A credit entry represents a positive change in accounts like liabilities, equity, and revenue, while it decreases assets and expenses—depending on the account type. Journals (such as the general journal) are where transactions are recorded, not the side of an account.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy