Understanding T-Accounts and Double-Entry Bookkeeping

What does the left side of a T-account represent?

• Credits

• Assets

• Debits

• Liabilities

Which accounts increase when debited?

• Revenue and Assets

• Expenses and Liabilities

• Dividends, Expenses, and Assets

• Liabilities, Owner's Equity, and Revenue

What does a general ledger store?

• Marketing strategies

• Financial transactions

• Inventory data

• Employee records

Which side of the T-account does a credit go on?

• Right

• Left

• Bottom

• Top

What does DEA in DEALER stand for?

• Deposits, Expenditures, Allocations

• Debits, Equity, Accounts

• None of the above

• Dividends, Expenses, Assets

What does the 'L' in DEALER stand for?

• Ledger

• Losses

• Liabilities

• Loans

What is the purpose of double-entry bookkeeping?

• To record transactions in at least two accounts

• To simplify financial statements

• To ensure accounts are updated monthly

• To increase financial transparency to the public

In double-entry bookkeeping, if you debit one account, what must you do to another?

• Ignore it

• None of the above

• Credit it

• Debit it

What type of account is 'Cash' considered in accounting?

• Asset

• Expense

• Liability

• Revenue

What happens to an asset account when it is debited?

• It decreases

• It increases

• It remains unchanged

• It fluctuates