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Classification of Accounts & Debit-Credit Rules

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Classification of Accounts & Debit-Credit Rules

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Accounts and D/C rules

Created by

KAVYA KV
KAVYA KV
India

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Classification of Accounts & Debit-Credit Rules
 

Classification of Accounts & Debit-Credit RulesOnline version

Accounts and D/C rules

by KAVYA KV
1

Which account type increases on the debit side?

2

Which account type increases on the credit side?

3

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

4

Which account normally carries a credit balance?

5

A withdrawal by the owner affects which accounts?

6

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

7

Classify 'Prepaid Insurance' and state its normal balance?

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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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