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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

On which side of an account are increases recorded for asset accounts?

Both sides

Credit side

Debit side

Neither side

Previous problemNext problem

Verified step by step guidance

Understand the basic accounting principle: Increases in asset accounts are recorded on the debit side. This is because assets are part of the accounting equation (Assets = Liabilities + Equity), and debits represent increases in assets.

Review the structure of a T-account. A T-account has two sides: the left side is the debit side, and the right side is the credit side. For asset accounts, increases are recorded on the left (debit) side.

Recall the rules of debits and credits: Debits increase asset accounts, while credits decrease them. This is a fundamental rule in double-entry accounting.

Consider examples of asset accounts, such as Cash, Accounts Receivable, or Equipment. When these accounts increase (e.g., receiving cash or purchasing equipment), the increase is recorded as a debit.

Apply this knowledge to the question: The correct answer is 'Debit side,' as increases in asset accounts are always recorded on the debit side according to accounting principles.