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Question
Statement I: When a nominal account is debited, it means money has been spent or lost.
Statement II: When an account relating to some asset is debited, it means the quantity of value of that asset has increased.
Options
Only I is correct.
Only II is correct.
Both I and II are correct.
Both I and II are wrong.
MCQ
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Solution
Both I and II are correct.
Explanation:
In accounting, debiting a nominal account means recording an expense or loss, and debiting an asset account means the value of that asset has increased.
Hence, both statements are correct.
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