ACC101_Chapter 2 (short quiz)

Choose the correct accounting equation

• Assets + Liabilities = Equity

• Assets = Liabilities - Equity

• Assets = Liabilities + Equity

Is this true for Debit & Credit theory?

Debit records sources

Credit records effects

• True

• False

For Assets, Debit is to record Increase

• True

• False

For Liabilities: Debit is to record

• Decrease

• Increase

For Equity, Credit is to record:

• Increase

• Decrease

Revenue increase: You will record a Debit Revenue

• True

• False

Expense increases: You will record a ___ Expense

• Debit

• Credit

Capital increases: You will record a ___ Capital

• Debit

• Credit

Withdrawals increase: You will record a ___ Withdrawals

• Debit

• Credit

Cash increases: You will record a Debit Cash

• True

• False