Question

Which of the following statements is not true for T accounts?
a. All of these statements are true.
b. The excess of the credits of an owner's equity account over the debits is the balance of the account.
c. The excess of the credits of a liability account over the debits is the balance of the account.
d. The excess of the credits of an asset account over the debits is the balance of the account.

Answer 1

Answer: The statement "d. The excess of the credits of an asset account over the debits is the balance of the account.". is NOT TRUE.

Explanation: The statement "d." is not true because according to the basic equity equation (ASSETS = LIABILITIES + EQUITY).

The excess of the debits of an asset account over the credits is the balance of the account and the excess of the credits of an owner's equity account or a liability account over the debits is the balance of the account.