Debit/Credit Rules

When cash increases we

• Credit

• Debit

• None of the above

When liabilities increase we debit

• True

• False

Bought motor van by cash $7,500. Identify the two accounts in

• Purchases and Cash

• Motor van and Cash

Paid $600 in rent. Identify the accounts, state whether the accounts are debited or credited.

Evaluate responses using AI:

OFF

Purchased computers for $12,000 on account. Identify the accounts, state which is debited and credited

Evaluate responses using AI:

OFF

When expenses are increased we credit

• True

• False

Applying the accounting equation determine the Capital.

Assets = $150,000

Liabilities= $75,000

• $70,000

• $75,000

• $85,000

• $65,000

Applying the Accounting Equation. Determine assets.

Liabilities= $80,000

Capital/Owners' Equity=$95,000

• $165,000

• $90,000

• $175,000

When accounts payable increases you credit.

• True

• False

When accounts receivable increases we debit

• True

• False