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As per the accounting double-entry system, an account that receives the benefit is
- a)No need to show as an accounting record
- b)Debit
- c)Income
- d)Credit
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
As per the accounting double-entry system, an account that receives th...
In this theory, as the two fold aspects of each transaction are recorded, therefore it is called 'double entry system'. receives the benefit is debited and the account which gives the benefit is credited.
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As per the accounting double-entry system, an account that receives th...
Explanation:
The accounting double-entry system is a method used to record financial transactions. It is based on the principle that every transaction has two effects - a debit and a credit. Each transaction is recorded in at least two accounts, with one account debited and the other account credited.
Accounting Record:
An account that receives the benefit of a transaction is required to be shown as an accounting record. This means that the transaction should be recorded in the respective account to accurately reflect the financial position of the entity.
Credit:
In the double-entry system, a credit entry is made when a liability or equity account increases or when an asset account decreases. This means that when an account receives the benefit of a transaction, it is typically credited.
Income:
Income is the amount earned by a business through its normal operations. It is recorded as a credit in the income statement to reflect the increase in revenue.
Debit:
A debit entry is made when an asset or expense account increases or when a liability or equity account decreases. Debit entries are typically made when an account gives the benefit of a transaction.
Conclusion:
Based on the above explanations, the correct answer is option 'B' - Credit. When an account receives the benefit of a transaction, it is typically credited in the double-entry system. This ensures that the accounting records accurately reflect the financial position of the entity and comply with the principles of the double-entry system.
The accounting double-entry system is a method used to record financial transactions. It is based on the principle that every transaction has two effects - a debit and a credit. Each transaction is recorded in at least two accounts, with one account debited and the other account credited.
Accounting Record:
An account that receives the benefit of a transaction is required to be shown as an accounting record. This means that the transaction should be recorded in the respective account to accurately reflect the financial position of the entity.
Credit:
In the double-entry system, a credit entry is made when a liability or equity account increases or when an asset account decreases. This means that when an account receives the benefit of a transaction, it is typically credited.
Income:
Income is the amount earned by a business through its normal operations. It is recorded as a credit in the income statement to reflect the increase in revenue.
Debit:
A debit entry is made when an asset or expense account increases or when a liability or equity account decreases. Debit entries are typically made when an account gives the benefit of a transaction.
Conclusion:
Based on the above explanations, the correct answer is option 'B' - Credit. When an account receives the benefit of a transaction, it is typically credited in the double-entry system. This ensures that the accounting records accurately reflect the financial position of the entity and comply with the principles of the double-entry system.
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As per the accounting double-entry system, an account that receives the benefit isa)No need to show as an accounting recordb)Debitc)Incomed)CreditCorrect answer is option 'B'. Can you explain this answer?
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