Credit or Debit
The balance of an asset account increases with a...
Debit
Cash is a ______ account
asset
What account comes first in a Journal Entry
The debit account
The payment of a utility bill is an external transaction
True
The balance of a liability account decreases with a...
Debit
Salaries payable is a _____ account
Liabilities
What account is indented to the right
The credit account
Obtaining cash by borrowing from a bank increases stockholders equity
False
Increases Assets and Liabilities
The balance of a stockholders' equity account increases with a
credit
Equipment is a _____ account
asset
What account always goes in the right column
The credit account
The term debit always means increase
False
*It always mean left handed side*
The balance of a dividend account decreases with a
Credit
Common stock is a _____ account
Stockholders' equity
Is the date included in a journal entry
YES
The purchase of supplies with cash would be recorded as *Debit supplies, Credit Cash*
True
The balance of an expense account increases with a
Debit
Bonds payable is a _____ account
Liabilities
Debits and Credits in a journal entry MUST ALWAYS BE...
Balanced
Posting is the process of listing all accounts and their balances at a particular date and showing the equality of debits and credits
False
*Posting is the process of transferring the debit and credit information from the journal to individual accounts in the general ledger*