Journal Entries: Debits and Credits quiz #2 Flashcards
BackJournal Entries: Debits and Credits quiz #2
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BackWhich type of account is increased with a credit?
Liabilities, equity, and revenue accounts are increased with a credit. Does common stock have a normal debit balance?
No, common stock does not have a normal debit balance; it has a normal credit balance. What does a credit entry represent in accounting?
A credit entry represents an increase in liabilities, equity, or revenue, or a decrease in assets or expenses. What are the four parts of a journal entry?
The four parts are: date, accounts affected, amounts debited and credited, and a description of the transaction. Which accounts have a normal credit balance?
Liabilities, equity, and revenue accounts have a normal credit balance. Which accounts normally have a debit balance?
Assets and expense accounts normally have a debit balance. Is common stock a debit or credit account?
Common stock is a credit account. Increases are entered on the credit side of which types of accounts?
Increases are entered on the credit side of liabilities, equity, and revenue accounts. What is the best interpretation of the word 'credit' in accounting?
In accounting, 'credit' refers to an entry that increases liabilities, equity, or revenue accounts, or decreases assets or expenses. Is common stock a credit account?
Yes, common stock is a credit account. What is the journal entry for the purchase of an asset on credit?
Debit the asset account and credit the liability account (such as accounts payable). What does the journal entry to purchase equipment on account include?
It includes a debit to the equipment account and a credit to accounts payable. Are decreases to liability accounts recorded on the credit side?
No, decreases to liability accounts are recorded on the debit side. Which accounts have a normal credit balance?
Liabilities, equity, and revenue accounts have a normal credit balance. What does a credit entry do in accounting?
A credit entry increases liabilities, equity, or revenue accounts, or decreases assets or expenses. Does a credit to the cash account increase the account?
No, a credit to the cash account decreases the cash balance. Which accounts have a normal debit balance?
Assets and expense accounts have a normal debit balance. Which accounts increase with a credit?
Liabilities, equity, and revenue accounts increase with a credit. A credit is not the normal balance for which type of account?
A credit is not the normal balance for asset and expense accounts. Which type of account is increased with a debit?
Assets and expense accounts are increased with a debit. Which account has a normal credit balance?
Liabilities, equity, and revenue accounts have a normal credit balance. Which accounts are increased with a debit?
Assets and expense accounts are increased with a debit. Which accounts increase with a debit?
Assets and expense accounts increase with a debit. Which account has a normal debit balance?
Assets and expense accounts have a normal debit balance. Which accounts have a normal debit balance?
Assets and expense accounts have a normal debit balance. A debit is used to record which of the following?
A debit is used to record increases in assets and expenses, and decreases in liabilities, equity, and revenue. What accounts have normal credit balances?
Liabilities, equity, and revenue accounts have normal credit balances. What are the four parts of a journal entry?
The four parts are: date, accounts affected, amounts debited and credited, and a description of the transaction. What happens when you credit a liability account?
Crediting a liability account increases the liability. What is the normal balance of accounts payable?
Accounts payable has a normal credit balance. Which accounts have a normal debit balance?
Assets and expense accounts have a normal debit balance. What is the normal balance of accounts payable?
The normal balance of accounts payable is a credit balance. What does a debit represent in accounting?
A debit represents an increase in assets or expenses, or a decrease in liabilities, equity, or revenue. Which account has a normal debit balance?
Assets and expense accounts have a normal debit balance. Why set up a recurring journal entry in accounting?
Recurring journal entries are set up to automate the recording of regular, repeated transactions, ensuring consistency and saving time.
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