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 type of account is increased with a debit?

Revenue

Asset

Equity

Liability

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Verified step by step guidance

Understand the concept of debits and credits: In accounting, debits and credits are used to record transactions. A debit increases certain types of accounts, while it decreases others. The type of account determines whether a debit increases or decreases its balance.

Identify the types of accounts: The main types of accounts in financial accounting are assets, liabilities, equity, revenue, and expenses. Each type behaves differently when debited or credited.

Recall the rule for assets: Assets are increased with a debit and decreased with a credit. This is because assets represent resources owned by the business, and adding to these resources is recorded as a debit.

Analyze the other account types: Revenue, equity, and liabilities are increased with a credit and decreased with a debit. This is the opposite of how assets behave.

Apply the rule to the question: Since the question asks which type of account is increased with a debit, the correct answer is 'Asset,' as debits increase the balance of asset accounts.