State BPA Fundamental Accounting Practice Exam

The left side of an account is associated with increases in certain types of accounts, specifically asset and expense accounts. In the double-entry accounting system, the left side of an account represents debits, which are used to record the acquisition of assets or increases in expenses. For example, when a business purchases inventory, it records the increase in assets on the left side of the asset account.

Conversely, the right side of an account, which represents credits, is typically associated with increases in liability, equity, and revenue accounts. Understanding which side corresponds to increases is crucial for properly maintaining and interpreting financial statements. Thus, recognizing the left side as the increase side for specific accounts helps clarify the overall structure and flow of accounting entries.