Understanding Debits and Credits in Accounting

What is one of the main challenges of becoming an accountant?

• Learning multiple languages

• Working hard and being diligent

• Understanding complex math

• Finding a job

What is the primary rule of the debit-credit theory?

• Debits are always larger than credits

• Debits and credits are interchangeable

• Debits are on the left, credits are on the right

• Credits are always larger than debits

What should you do to ensure complete satisfaction in accounting?

• Focus on equity

• Balance all of your transactions

• Increase your assets

• Decrease your liabilities

What happens to an asset when it increases?

• It remains unchanged

• It is debited

• It is credited

• It is transferred

What is the effect on liabilities when they increase?

• They remain unchanged

• They are transferred

• They are credited

• They are debited

What is the reverse effect for liabilities and equity compared to assets?

• Credits decrease them

• Credits increase them

• Debits increase them

• Debits decrease them

What is necessary to understand accountancy?

• Memorizing all financial laws

• Knowing the fundamental accounting equation

• Having a degree in finance

• Working in a bank

What is the key to becoming a high roller in accounting?

• Being born with talent

• Working your way up to controller

• Having a lot of money

• Knowing influential people

What is the repeated mantra for balancing transactions?

• Debits on the right, credits on the left

• Debits on both sides

• Debits on the left, credits on the right

• Credits on both sides

What is the ultimate goal for satisfaction in accounting?

• Maximizing equity

• Decreasing all liabilities

• Increasing all assets

• Balancing all transactions