The difference between the total debits and the total credits in an account is the

The difference between the total debits and the total credits in an account is the

• A. balance
• B. revenue
• C. net income
• D. expense

Answer: (B)

The difference between the total debits and total credits in an account is the balance of that account. In double-entry accounting, you accumulate debits and credits for each account, and the net result—the difference—shows what balance remains. If debits exceed credits, the account has a debit balance; if credits exceed debits, it has a credit balance. Revenue, net income, and expenses are terms used on the income statement, describing performance over a period, not the single-account balance itself. For example, if an account shows debits of 4,000 and credits of 1,500, the balance is 2,500 debit. If the credits were higher, the balance would be a credit balance.

The difference between the total debits and total credits in an account is the balance of that account. In double-entry accounting, you accumulate debits and credits for each account, and the net result—the difference—shows what balance remains. If debits exceed credits, the account has a debit balance; if credits exceed debits, it has a credit balance. Revenue, net income, and expenses are terms used on the income statement, describing performance over a period, not the single-account balance itself. For example, if an account shows debits of 4,000 and credits of 1,500, the balance is 2,500 debit. If the credits were higher, the balance would be a credit balance.