When preparing a journal entry, the credits must be listed before the debits.
True Or False?
When preparing a journal entry, the credits must be listed before the debits. True Or False?
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False.
In traditional accounting practice, when preparing a journal entry, the debits are listed before the credits. The standard format for a journal entry is to list all debits first, each on a new line, and then list the credits, usually indented slightly, to distinguish them from the debits. This format helps maintain clarity and consistency in financial records.