Which of the following explains the debit and credit rules relating to the recording of revenue and expenses?

• Expenses appear on the left side of the balance sheet and are recorded by debits; revenue appears on the right side of the balance sheet and is recorded by credits.
• None of these.
• Revenue increases owner's equity and is recorded by a credit; expenses decrease owner's equity and are recorded as debits.
• Expenses appear on the left side of the income statement and are recorded by debits; revenue appears on the right side of the income statement and is recorded by credits.

Related MCQs

• Which of the following are incorrect? (I) Goods sold for cash → Debit: Cash | Credit: Sale (II) Goods bought on credit from T Carter → Debit: Purchase | Credit: T Carter (III) Goods returned by us to C Barry → Debit: C Barry | Credit: Outward (IV) Van bought for cash → Debit: Purchase | Credit: Cash
• According to the rules of debit and credit for balance sheet accounts ______?
• Credit note is the basis for recording a transaction in which of the following journals?
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