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 credit?

Asset

Expense

Dividend

Liability

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Verified step by step guidance

Understand the basic accounting equation: Assets = Liabilities + Equity. This equation forms the foundation of double-entry accounting.

Learn the rules of debit and credit for different account types. Assets, Expenses, and Dividends are increased with debits, while Liabilities, Revenues, and Equity are increased with credits.

Analyze the question: It asks which type of account is increased with a credit. Based on the rules, liabilities are increased with credits.

Review examples of liability accounts, such as Accounts Payable, Notes Payable, and Unearned Revenue, to reinforce the concept.

Remember that credits decrease accounts like Assets, Expenses, and Dividends, while increasing accounts like Liabilities, Revenues, and Equity. This distinction is crucial for understanding double-entry accounting.