What statement regarding T accounts is true?

Question

T accounts are used for assets only.

They can include increases and decreases for more than one asset or liability.

Debits are on the left, and credits are on the right.

T accounts might accommodate transactions for more than one account.

Answer 1

The true statement regarding T accounts is:

Debits are on the left, and credits are on the right.

This is a fundamental rule in accounting that applies to all T accounts, which represent the accounting equation's framework regardless of the type of account (assets, liabilities, equity, etc.).