Classification of Accounts & Debit-Credit Rules

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Accounts and D/C rules

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KAVYA KV

India

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Classification of Accounts & Debit-Credit RulesVersión en línea Accounts and D/C rules por KAVYA KV 1 Which account type increases on the debit side? a Asset b Liability c Equity d Revenue 2 Which account type increases on the credit side? a Asset b Liability c Drawings d Expense 3 To increase an expense, is the entry a debit or credit? a Neither b Debit c Both d Credit 4 Which account normally carries a credit balance? a Asset b Expense c Drawing d Revenue 5 A withdrawal by the owner affects which accounts? a Drawings decreased by credit; Cash increased by credit b Drawings (Equity) decreased by debit; Cash (Asset) decreased by credit c Drawings increased by debit; Cash increased by debit d Drawings increased by credit; Cash increased by debit 6 Which accounts increase with a credit when recording a revenue transaction? a Revenue b Asset c Liability d Expense 7 Classify 'Prepaid Insurance' and state its normal balance? a Expense; Credit balance b Asset; Credit balance c Liability; Debit balance d Asset; Debit balance Feedback 1 Assets increase with debits and decrease with credits. 2 Liabilities increase with credits and decrease with debits. 3 Expenses have a normal debit balance. 4 Revenues increase with credits. 5 Drawings reduce equity and cash decreases with credits. 6 Revenues increase on the credit side. 7 Prepaid insurance is an asset; increases with a debit.

Classification of Accounts & Debit-Credit RulesVersión en línea

Accounts and D/C rules

por KAVYA KV

Which account type increases on the debit side?

Asset

Liability

Equity

Revenue

Which account type increases on the credit side?

Asset

Liability

Drawings

Expense

To increase an expense, is the entry a debit or credit?

Neither

Debit

Both

Credit

Which account normally carries a credit balance?

Asset

Expense

Drawing

Revenue

A withdrawal by the owner affects which accounts?

Drawings decreased by credit; Cash increased by credit

Drawings (Equity) decreased by debit; Cash (Asset) decreased by credit

Drawings increased by debit; Cash increased by debit

Drawings increased by credit; Cash increased by debit

Which accounts increase with a credit when recording a revenue transaction?

Revenue

Asset

Liability

Expense

Classify 'Prepaid Insurance' and state its normal balance?

Expense; Credit balance

Asset; Credit balance

Liability; Debit balance

Asset; Debit balance

Feedback

Assets increase with debits and decrease with credits.

Liabilities increase with credits and decrease with debits.

Expenses have a normal debit balance.

Revenues increase with credits.

Drawings reduce equity and cash decreases with credits.

Revenues increase on the credit side.

Prepaid insurance is an asset; increases with a debit.

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Classification of Accounts & Debit-Credit Rules

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Classification of Accounts & Debit-Credit RulesVersión en línea

por KAVYA KV

Which account type increases on the debit side?

Which account type increases on the credit side?

To increase an expense, is the entry a debit or credit?

Which account normally carries a credit balance?

A withdrawal by the owner affects which accounts?

Which accounts increase with a credit when recording a revenue transaction?

Classify 'Prepaid Insurance' and state its normal balance?

Feedback