Double-Entry System

A decrease to Accounts Payable is a

• debit

• credit

An asset account is increased with a _________.

• debit

• credit

An increase to Accounts Receivable is a ____________.

• debit

• credit

A payment to an Accounts Payable 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 is the entry to record the cost price of a sales return?

• Dr: Sales Returns

  Dr: GST Clearing

  CR: Accounts Receivable

• Dr: Cost of Sales

  Cr: Inventory

• Dr: Inventory

  Cr: Cost of Sales

The Right-hand side of a ledger 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