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

A debit is used to increase which of the following types of accounts?

Liability accounts

Asset accounts

Revenue accounts

Equity accounts

Previous problemNext problem

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 decreasing others. Similarly, a credit has the opposite effect.

Identify the types of accounts: The main types of accounts in financial accounting are assets, liabilities, equity, revenue, and expenses. Each type reacts differently to debits and credits.

Analyze the effect of a debit on asset accounts: Asset accounts represent resources owned by a company, such as cash, inventory, and equipment. Debits are used to increase asset accounts because they represent an inflow or acquisition of resources.

Compare the effect of a debit on other account types: Debits decrease liability accounts (obligations owed), equity accounts (owner's claims), and revenue accounts (income earned). This is because these accounts represent outflows or reductions in obligations or earnings.

Conclude that a debit is used to increase asset accounts: Based on the analysis, debits are specifically used to increase asset accounts, as they represent the addition of resources to the company.