Debits & Credits

______________ every business transaction is recorded in a least two account.

• Double Entry Accounting

• Debit

• Credit

Double entry accounting may affect more than two accounts.

• True

• False

There must be both a debit and credit in any transaction

• True

• False

Debit transaction occur on the right hand side of the t account.

• True

• False

The following accounts are increased with a debit: Dividends, Expenses, Assets, and Losses

• True

• False

Generally the following types of accounts are increased with a credit: Gains, Income, Revenues, Liabilities, and Stockholders Equity

• True

• False

When you credit an asset account you increase its balance

• True

• False

When you Credit a Liability account you increase the balance

• True

• False

________________________ accounts include capital, drawing, revenue, and expenses

• Owners Equity

• Assets

• Liabilities

When cash is received you should debit cash

• True

• False