VOCABULARY
an amount recorded on the left side of an account
Debit
Debit on the _____; Credit on the ______
Left; Right
YES!!!
Justin Bieber is rumored to have been in a ton of debt - what type of account is the debt someone owes?
Liabilities
An accounting device used to analyze transactions is a T account
True
an amount recorded on the right side of an account
credit
What is the normal balance of a Liability or Capital account?
Credit (Right side)
When an owner invests cash in a business, the owner’s capital account is (increased or decreased and by debit or credit)?
increased by a credit
Taylor Swift used to rent a house on Cornelia Street, what account would that be?
Rent Expense
An amount recorded on the right side of a T account is a Debit
the side of the account that is increased is called?
the Normal Balance
What does a debit do to any liability?
decreases it
If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is what?
Decreased
In Black Panther: Wakanda Forever, Wakanda’s vibranium supply is basically what in accounting terms?
Asset
A list of accounts used by a business is a chart of accounts
True
Every transactions changes the balance of how many accounts?
At least 2
If you receive cash from sales, which account is recorded on the left side of their T account and which is on the right?
Cash; Sales (Revenue)
The normal balance side of any revenue account is the?
right side
In Stranger Things, Dustin and friends sell AV club memberships. What type of accounting entry is that for them?
Revenue/Sales
Common accounting practice is to record withdrawals as debits directly in the owner’s capital account
False
What does the acronym DEAD C stand for?
Debit Expenses, Assets, & Distributions
Credit, everything else
When cash is paid for Rent, what account is affected (other than cash) and what side would the amount be recorded on?
Rent Expense; Left
When a business pays cash on account, a liability account is?
decreased by a debit
Which pop star is famous for the lyric “Pay me what you owe me” — basically demanding accounts receivable?
Rihanna
The left side of an asset account is the credit side, because asset accounts are on the left side of the accounting equation
False