What statement is true regarding T accounts?

Question

T accounts reflect increases and decreases in a single account.

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

T accounts might accommodate transactions for more than one account.

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

Answer 1

The true statements regarding T accounts are:

1. T accounts reflect increases and decreases in a single account.
2. Debits are on the left, and credits are on the right.

The other statements are not accurate. T accounts are designed to represent individual accounts and track the increases and decreases for those specific accounts. Each T account is used for one account only (asset, liability, equity, revenue, or expense) and does not combine more than one account within the same T account.