NECO Book Keeping 2015 Objective — Question 40
Question 40 of 40 from the National Examinations Council (NECO) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.
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The double entry principle is applied in a trial balance by debiting
- A. expenses and crediting incomesCorrect
- B. profit and crediting expenses
- C. incomes and crediting losses
- D. profit and crediting losses
Explanation
In preparing a trial balance, expenses (and assets) are listed as debit balances, while incomes (and liabilities) are listed as credit balances, reflecting the double entry principle.
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