Question

Which of the following statements about T accounts is true?

a. The right side of the T account is called the debit side.
b. The top of the T account contains the ending balance.
c. It is the simplest form of account.
d. The left side of the T account is called the credit side.

Answer 1

The correct statement about T accounts is that it is the simplest form of account.

Step-by-step explanation:

A T-account is a visual representation of a general ledger account that is used for teaching and informal tracking of financial transactions. Each T-account has two sides: the left side is known as the debit side, and the right side is known as the credit side.

The top of the T-account typically contains the account name, not the ending balance. Accounting entries are made as debits and credits in these T-accounts, and they are used to ensure that the accounting equation (assets = liabilities + equity) remains balanced. This means that increases in liabilities or decreases in assets are recorded on the left side of the T account. Conversely, increases in assets or decreases in liabilities are recorded on the right side of the T account, which is called the debit side.