Debits vs. Credits
Which side of the T-account represents debits?
What is the left side?
What do T-accounts help accountants visualize?
What are how transactions affect accounts – increases and decreases?
Which account type does "Accounts Payable" belong to?
What are liabilities?
Buying a new truck with cash: Does cash go up or down?
What is down?
You buy office supplies for cash. What happens to the Cash account?
A decrease in assets will be listed as what?
What is a credit?
Where does a t-account get its namesake from?
What is because it's shaped like a T?
Which account type does "Equipment" belong to?
What are assets?
Paying rent expense: Which account is debited?
What is Rent Expense?
A customer pays off their $500 debt. What happens to Accounts Receivable?
What is it decreases – Credit Accounts Receivable?
If a business purchases supplies on account, what are the debit and credit entries?
What is Debit Supplies, Credit Accounts Payable?
A business pays off a $2,000 loan. Show the T-account entries.
What is Debit Loan Payable, Credit Cash?
If you own a bakery, where would “Ingredients Inventory” go?
What is under assets?
Receiving payment from a customer on credit for a product: Which two accounts are affected?
What are Inventory and Accounts Receivable?
A business borrows money from the bank. What happens to Loan Payable?
What is it increases – Credit Loan Payable?
What happens when a company receives a cash donation? (Debit what, credit what?)
What is debit cash, credit revenue/owner's equity?
A customer pays off their balance. How does this affect Accounts Receivable?
What is Debit Cash, Credit Accounts Receivable?
An external investor puts $5000 into a business. Which two accounts increase?
What is cash/bank balance and owner's equity?
You pay off a $15 000 loan from the bank. Which account is credited?
You purchase equipment with a loan. What happens to total assets?
What is they increase – Debit Equipment?
A taxi cab company purchases a vehicle using a loan. Which accounts would be debited and credited?
What is debit Equipment/Inventory, credit Loan Payable?
You receive $1,500 from a customer for services performed. Show the full T-account entry.
What is Debit Cash $1,500, Credit Revenue $1,500?
A business takes out a $10,000 bank loan to help with expansion. Which two accounts are involved?
What are cash/bank balance and loans payable?
You invest $10,000 of personal money into your business. What account is credited?
Owner's Equity
A company earns $2,000 in revenue but hasn’t received payment yet. What happens next?
Debit Accounts Receivable, Credit Revenue