Debits and Credits in the Accounting Equation

What does the acronym DEALER stand for in accounting?

• Debits, Expenses, Assets, Liabilities, Equity, Revenue

• Dividends, Expenses, Assets, Liabilities, Equity, Revenue

• Debits, Expenses, Assets, Liabilities, Equity, Retained Earnings

• Dividends, Expenses, Assets, Liabilities, Equity, Retained Earnings

According to the Accounting Stuff YouTube video, what is DEALER considered?

• A popular accounting software

• The number 1 accounting hack

• An accounting term used in auditing

• A type of financial report

Which accounts are considered debit accounts in accounting?

• Dividends, Expenses, Assets

• Liabilities, Equity, Revenue

• Dividends, Expenses, Revenue

• Assets, Liabilities, Equity

What happens to the balances of debit accounts when debits are recorded?

• They increase

• They decrease

• They stay the same

• It depends on the account type

Which accounts are considered credit accounts in accounting?

• Dividends, Expenses, Assets

• Liabilities, Equity, Revenue

• Dividends, Expenses, Revenue

• Assets, Liabilities, Equity

What happens to the balances of credit accounts when credits are recorded?

• They increase

• They decrease

• They stay the same

• It depends on the account type

What do credits represent in accounting?

• The sources that economic benefit can flow from

• The destinations that economic benefit can flow to

• The changes in account balances

• The transactions recorded in the general ledger

What do debits represent in accounting?

• The sources that economic benefit can flow from

• The destinations that economic benefit can flow to

• The changes in account balances

• The transactions recorded in the general ledger

According to the text, where could cash come from as a source in a business?

• Borrowed from a third-party, owner's investment, earned from selling a product

• Borrowed from a third-party, owner's investment, earned from providing a service

• Borrowed from a third-party, owner's investment, earned from interest

• Borrowed from a third-party, owner's investment, earned from investments

According to the text, where could cash go as a destination in a business?

• Distribute it back to the owners, pay the business's bills, purchase assets

• Distribute it back to the owners, pay the business's debts, purchase liabilities

• Distribute it back to the owners, pay the business's expenses, purchase expenses

• Distribute it back to the owners, pay the business's liabilities, purchase liabilities