Debits or Credits
A company purchases office supplies. This account is debited.
What is supplies (Or asset)?
This type of account, which represents resources owned by a business, normally has a debit balance.
What are Assets
Cash, inventory, and equipment belong to this Classifications of accounts.
What are Assets?
Cash and Accounts Recievable fall under this type of account.
What are Assets?
This is the first in recording a business transaction in the accounting system.
What is Journalizing
When a business earns revenue on account, this account is credited.
What is revenue?
Revenue accounts have this type of normal balance, increasing when recorded.
What is a credit?
Accounts Payable is a part of this account classification.
What are Liabilites?
What are liabilites?
When a business pays off a loan, this account is debited
What is Liabilities?
This type of account represents obligations owed to creditors and has a normal credit balance
What are Liabilities?
This classification is used to track an increase in the value of owners interest in the company.
What is Equity?
Salaries Expenses and Utilities Expenses fall under this account type.
What are expenses?
When a business earns revenue in cash, this account is debited.
What is Cash
To record an Increase in an Expense account, you use this type of balance.
What is a Debit?
Sales Revenue and Service Revenue are part of this classification of accounts.
What is revenue
Owners Drawings and Owners Captial fall under this account type.
What is Owners Equity?
To record an increase in an Expense account, this side of the journal entry is used.
What is the debit side?
When owners contribute cash to the business, this account is credited.
What is Capital?
This type eof account, representing the residual interest of the owners in a company, normally has a credit balance.
What is Equity?
Salaries expense and rent expense belong to this classification of accounts.
What are expenses?
This document is used as evidence when journalizing a transaction.
What is a source document.