ACC: 3-1 Debits, Credits, and T-Accounts

Who is considered to be the 'father of modern accounting'?

• Leonardo da Vinci

• Marco Polo

• Galileo Galilei

• Luca Pacioli

What is the double-entry accounting system used to ensure?

• Balancing revenue and expenses

• Increase in assets only

• Equal and opposite effect of financial transactions

• Decrease in liabilities only

What is the shape formed by the accounting equation?

• S

• O

• X

• T

What is the net or cumulative difference of all increases and decreases of an account called?

• Transaction balance

• Revenue balance

• Account balance

• Equity balance

What does a debit mean in the context of accounting?

• Increase in assets

• Decrease in liabilities

• Right side of an account

• Left side of an account

What accounts are always on the LEFT side of the accounting equation?

• Equity

• Liabilities

• Assets

• Expenses

To increase any asset account, the account must be:

• Multiplied

• Balanced

• Debited

• Credited

To increase any liability account, the account must be:

• Credited

• Debited

• Balanced

• Multiplied

What is the normal balance of any asset account?

• Equity side

• Debit side (left side)

• Liability side

• Credit side (right side)

What is the normal balance of any liability account?

• Credit side (right side)

• Asset side

• Debit side (left side)

• Equity side