Future Business Leaders of America (FBLA) Accounting Practice Test

Which term describes an amount recorded on the left side of a T Account?

1. Credit

2. Debit

3. Expense

4. Liability

The correct answer is: Debit

The term that describes an amount recorded on the left side of a T Account is Debit. In accounting, T Accounts are used to represent individual accounts and their balances for a specific period. The left side of a T Account is always associated with debits, which reflect increases in asset or expense accounts and decreases in liability or equity accounts. In accounting, when a transaction is recorded, a debit entry is often made when assets are acquired, expenses are incurred, or revenue is deferred. This structural organization in accounting ensures that the double-entry bookkeeping system maintains its balance, as every debit entry must have a corresponding credit entry on the right side of the T Account. Therefore, recognizing that the left side of a T Account represents a debit is essential in understanding fundamental accounting principles and ensuring accurate financial records.