asked 150k views
5 votes
Totals on the debit and credit sides to determine the balance of an account are known as?

1) credits
2) footings
3) rulings
4) debits

asked
User Gallop
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1 Answer

4 votes

Final answer:

Totals on the debit and credit sides to determine an account balance are known as footings. These are essential in accounting, especially while maintaining a T-account, to assess the financial position and performance.

Step-by-step explanation:

The totals on the debit and credit sides used to determine the balance of an account are known as footings. In accounting, after all entries have been made in the debit and credit columns, the totals of these columns are calculated to find the balance in the respective account. This is part of the process in maintaining a T-account, where the left side represents assets and the right side represents liabilities and net worth.

The balance of an account helps in understanding the financial position and performance, such as the current account balance in terms of exports, imports, and the overall financial balance.

answered
User Denis Kotov
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8.0k points
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