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Basic Accounting Principles

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1.You have been nominated by your institution for a seminar because of your proficiency in basic accounting concepts. The participants and audience include college professors, practicing CPAs, and fellow students. The theme of the seminar is Basic Accounting Principles. You have been asked to share whether or not the statement "Debit means decrease, and credit means increase." is true. List and discuss the various points that you will share with the audience.

2.You are an employee of a wealth-management consultancy. As your first accounting assignment for the consultancy, you are auditing the chart of accounts for a client. You notice that all receivables are treated as assets and all payables as liability in the chart of accounts. Is this correct? Explain your answer.

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This solution defines basic accounting principles in 936 words.

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1. The given statement is not true . A debit to a liability, revenue, or equity account is a decrease to that account, and a credit to a liability, revenue, or equity account is an increase to that account. But, A debit to an asset or expense account is an increase to that account, and a credit to an asset or expense account is a ...

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