Question

In a double entry accounting system, the right side of the account is referred to as a ___________

a) Debit
b) Credit
c) Income
d) Expense

Answer 1

b) Credit

In a double entry accounting system, the right side of an account is referred to as a Credit. Credits are recorded on the right and debits on the left, maintaining the balance of the accounting equation.

Step-by-step explanation:

In a double entry accounting system, the right side of the account is referred to as a b) Credit. The double entry system is a foundational concept in accounting where each transaction affects at least two accounts and ensures that the accounting equation stays balanced. This system records each transaction as both a debit and a credit, with debits appearing on the left side and credits on the right side of a ledger. An easy way to remember this is that 'debit' has the same number of letters as 'left', whereas 'credit' has the same number of letters as 'right'.