Double-Entry System

A decrease to Accounts Payable is a

• debit

• credit

An asset account is increased with a _________.

• debit

• credit

An increase to Utilities Expense is a ____________.

• debit

• credit

The normal balance for Building is a __________.

• debit

• credit

An increase to a revenue account is a ____________.

• debit

• credit

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

• Income Statement

• Statement of Owner's Equity

• Balance Sheet

• Statement of Cashflows

What are the items (accounts) shown in the Income Statement?

• Revenues and Expenes

• Assets, Liabilities and Capital

• Beginning Capital, Net Income and Withdrawals

The Right-hand side of a "T" account is called _______.

• debit

• credit

The accounting element that provides benefits now and in future.

• ASSETS

• LIABILITIES

• CAPITAL OR OWNER'S EQUITY

The accounting equation is defined as _______.

• ASSETS + LIABILITIES = CAPITAL

• ASSETS - LIABILITIES = CAPITAL

• ASSETS = LIABILITIES + CAPITAL

• ASSETS = LIABILITIES - CAPITAL