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

For each of the following accounts, indicate whether a debit or a credit decreases its normal balance:1. Asset2. Liability3. RevenueWhich of the following correctly matches the type of entry (debit or credit) that decreases the normal balance for each account listed above (in order)?

1. Credit, 2. Debit, 3. Debit

1. Debit, 2. Debit, 3. Credit

1. Debit, 2. Credit, 3. Credit

1. Credit, 2. Credit, 3. Debit

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Verified step by step guidance

Step 1: Understand the concept of normal balance. In accounting, each account type has a normal balance, which is the side (debit or credit) that increases the account. For example, assets have a normal debit balance, liabilities have a normal credit balance, and revenues have a normal credit balance.

Step 2: Determine how to decrease the normal balance for each account type. To decrease an account's normal balance, you record an entry on the opposite side of its normal balance. For assets (normal debit balance), a credit decreases the balance. For liabilities (normal credit balance), a debit decreases the balance. For revenues (normal credit balance), a debit decreases the balance.

Step 3: Match the type of entry (debit or credit) that decreases the normal balance for each account listed. Based on the analysis: 1. Asset (credit decreases), 2. Liability (debit decreases), 3. Revenue (debit decreases).

Step 4: Compare the correct matches to the provided answer choices. The correct sequence is: 1. Credit, 2. Debit, 3. Debit.

Step 5: Select the answer choice that matches the correct sequence. The correct answer is: 1. Credit, 2. Debit, 3. Debit.