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?
What happens if you debit Cash?
What is cash increases?
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?
If the business buys supplies for $300 on credit, how is it recorded?
Supplies (debit $300)
Accounts Payable (credit $300)
What happens if you credit Cash?
What is cash decreases.
If a business purchases supplies on account, what are the debit and credit entries?
What is Debit Supplies, Credit Accounts Payable?
Liabilities increase on the debit or credit side
What is the credit side?
If you own a bakery, where would “Ingredients Inventory” go?
What is under assets?
If the owner invests $2,000 cash in the business, how is it recorded?
Cash (debit $2,000)
Owner’s Capital (credit $2,000)
What happens if you debit Accounts Payable?
Liability decreases.
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 asset and owner's equity?
If a business pays $500 cash for rent, which accounts are affected?
Rent Expense (debit $500)
Cash (credit $500)
Assets increase on which side of the T-account
What is the debit side?
Which side of the T-account represents credit
What is the right side?
Revenue increase on the debit or credit side?
What is the credit side.
Does expenses increase on the debit or credit side?
What is the debit side?
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