Table of contents

Skip topic navigation

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

On a bank statement, a customer's deposit will be shown as which of the following?

Expense

Liability

Credit

Debit

Previous problemNext problem

Verified step by step guidance

Understand the nature of a bank statement: A bank statement is a record of transactions in a customer's account, including deposits, withdrawals, and other activities.

Recognize the accounting perspective: From the bank's point of view, a customer's deposit represents money that the bank owes to the customer. This is considered a liability for the bank.

Identify the accounting entry: In double-entry accounting, liabilities are increased with a credit entry. Therefore, the deposit will be recorded as a credit on the bank's books.

Clarify the terminology: While the deposit is a credit from the bank's perspective, it may appear as a debit on the customer's account statement because it increases the customer's account balance.

Conclude the reasoning: The correct answer is 'Credit' because the deposit increases the bank's liability, which is recorded as a credit in the bank's accounting system.