3-1 Debits, Credits, and T-Accounts Video Questions

Double-Entry Accounting is a system of accounting that involves:

• Recording each transaction twice, once as a debit and once as a credit

• Recording each transaction only once

• Recording transactions without any specific rules

• Recording transactions in a single-entry system

The 'T' in Accounting is significant because it represents:

• The shape of the ledger used in double-entry bookkeeping

• The term 'Transaction'

• The term 'Taxation'

• The term 'Total'

What shape does the accounting equation form, where the LEFT side always equals the RIGHT side?

• The accounting equation forms a balanced shape, typically represented as a rectangle or a square, where the left side (assets) equals the right side (liabilities plus equity).

• The accounting equation forms a circular shape, where the left side (assets) equals the right side (liabilities plus equity).

• The accounting equation forms a triangular shape, where the left side (assets) equals the right side (liabilities plus equity).

• The accounting equation forms a linear shape, where the left side (assets) equals the right side (liabilities plus equity).

What is a T-Account used for?

• Recording financial transactions

• Measuring temperature

• Tracking time

• Calculating taxes

In double-entry accounting, what happens to accounts when a financial transaction occurs?

• Accounts are debited and credited

• Accounts are only debited

• Accounts are only credited

• Accounts remain unchanged

A T-Account is separated into which two parts?

• The two parts of a T-Account are the debit side and the credit side.

• The two parts of a T-Account are the asset side and the liability side.

• The two parts of a T-Account are the income side and the expense side.

• The two parts of a T-Account are the cash side and the accrual side.

What is the abbreviation for Debit?

• DBT

• DB

• DT

• D

What is the abbreviation for Credit?

• Credit

• CR

• CD

• CRT

Debits and credits are fundamental to which process?

• Debits and credits are fundamental to the accounting process.

• Debits and credits are fundamental to the cooking process.

• Debits and credits are fundamental to the gardening process.

• Debits and credits are fundamental to the painting process.

What is an accounting transaction entry made on the left side of an account called?

• Credit

• Debit