Table of contents

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

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Multiple Choice

Which of the following is NOT considered a debit in accounting journal entries?

Increase in assets

Increase in revenue

Decrease in liabilities

Increase in expenses

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Verified step by step guidance

Understand the concept of debits and credits in accounting: Debits are entries that increase asset and expense accounts, and decrease liability, equity, and revenue accounts. Credits, on the other hand, increase liability, equity, and revenue accounts, and decrease asset and expense accounts.

Analyze each option provided in the question: Determine whether each option aligns with the definition of a debit or a credit.

Option 1: 'Increase in assets' - Increasing assets is recorded as a debit because assets are on the left side of the accounting equation and debits increase their balance.

Option 2: 'Increase in revenue' - Revenue is part of equity and is increased by credits, not debits. This makes it the correct answer to the question.

Option 3: 'Decrease in liabilities' and Option 4: 'Increase in expenses' - Decreasing liabilities is recorded as a debit, and increasing expenses is also recorded as a debit, as both align with the rules of debits in accounting.