T-account
Which account category would be credited to record a decrease in its balance?
Assets
T/F
Every transaction must affect accounts on both sides of the Actg Equation.
False
Analyze txn into its Debit & Credit part:
Business pays cash for Insurance.
Analyze txn into its Debit & Credit part:
Business pays cash on account to Ruiz.
Debit A/P - Ruiz; Credit- Cash
What is the largest organ in the human body?
The Skin
Which account category would be credited to record a increase in its balance?
Liability, Owner's Equity
What does the "Normal Balance" mean?
The side of the account in which increase is recorded on.
Analyze txn into its Debit & Credit part:
Business pays cash for supplies
Debit Supplies; Credit Cash
Analyze txn into its Debit & Credit part:
Business receives cash from sales.
Debit Cash; Credit Sales
How many hearts does an octopus have?
Three
True/False
An account’s Normal Balance is on the same side as its position in the Accounting Equation.
True
Is Withdrawal considered and expense? Yes/No and briefly explain why.
NO - because expense is cost of doing/operating business.
Analyze txn into its Debit & Credit part:
Business buys supplies on account from Office Depot.
Debit Supplies; Credit A/P- Office Depot.
Analyze txn into its Debit & Credit part:
Owner withdraws cash for personal use.
Debit Owner's Drawing; Credit Cash
Which bird can fly backward?
The Hummingbird
Every accounting equation must always ________, and ________ is recorded BEFORE __________.
Balance; Debit; Credit
Why does an expense account have a normal debit balance?
B/c Expense decreases Owner's Equity and Owner's Equity decreases are recorded on the Debit/Left side.
Analyze txn into its Debit & Credit part:
Sold services on account to Ruiz.
Debit A/R - Ruiz; Credit Sales
Analyze txn into its Debit & Credit part:
Business pays cash for Utilities.
Debit - Utilities Expense; Credit Cash
Which planet has the shortest day?
Under the ___________ system, every financial transaction requires a debit in at least one account and a matching ______in another account
Double Entry Accounting; Credit
What are the four-questions you go through when analyzing transactions?
1) What are the accounts affected?
2) What are their classification?
3) How is each classification affected?
4) How would this be recorded?
Analyze txn into its Debit & Credit part:
Receive cash on account from Ruiz.
Debit Cash; Credit A/R - Ruiz
Analyze txn into its Debit & Credit part:
Business receives cash from owner as additional investment.
Debit Cash; Credit Owner's Capital
How many bones does an adult human usually have?
206