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

The left side of an account is used to record which of the following?

Liabilities

Credits

Debits

Revenues

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Verified step by step guidance

Understand the structure of a T-account: A T-account is a visual representation of an account in the ledger, where the left side is referred to as the 'debit' side and the right side is referred to as the 'credit' side.

Recall the basic accounting equation: Assets = Liabilities + Equity. Debits and credits are used to record changes in these accounts.

Learn the rules of debits and credits: Debits increase asset and expense accounts, while credits increase liability, equity, and revenue accounts.

Apply the rule to the question: The left side of an account (debit side) is used to record increases in asset and expense accounts, and decreases in liability, equity, and revenue accounts.

Conclude that the correct answer is 'Debits,' as the left side of an account is specifically designated for recording debits.