Debit and Credits in accounting

Which side of a T-account is the debit side?

• Left

• Right

• Top

• Bottom

What is the normal balance of an asset account?

• Credit

• Debit

• Both

• Neither

Which account type has a Normal credit balance?

• Asset

• Expense

• Liability

• Drawing

In accounting, which scenario would a "credit" be the correct transaction?

• Increase in assets

• Decrease in liabilities

• Increase in liabilities or equity

• Decrease in revenue

Which of the following accounts is increased by a debit entry?

• Revenue

• Liability

• Asset

• Capital

What is the effect of a credit entry on an asset account?

• Increases the account

• Decreases the account

• No effect

• Doubles the account

Which of the following is NOT a type of account in accounting?

• Asset

• Liability

• Revenue

• Transaction

If you debit the Cash account, what happens to its balance?

• It increases

• It decreases

• It stays the same

• It is closed

Which of the following transactions would require a credit to the Service Revenue account?

• Paying rent

• Earning fees for services performed

• Purchasing supplies

• Paying salaries

What is the double-entry accounting rule?

• Every transaction affects only one account

• Every transaction must be recorded in at least two accounts

• Only cash transactions are recorded

• Only credit transactions are recorded