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

A debit is used to record which of the following?

An increase in a revenue account

A decrease in an expense account

An increase in a liability account

An increase in an asset account

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Verified step by step guidance

Understand the concept of debits and credits: In accounting, debits and credits are used to record changes in accounts. A debit entry typically increases asset and expense accounts, while it decreases liability, equity, and revenue accounts.

Analyze the options provided: Review each option to determine whether it aligns with the general rules of debits and credits.

Option 1: 'An increase in a revenue account' - Revenue accounts are increased by credits, not debits. Therefore, this option is incorrect.

Option 2: 'A decrease in an expense account' - Expense accounts are decreased by credits, not debits. This option is also incorrect.

Option 3: 'An increase in a liability account' - Liability accounts are increased by credits, not debits. This option is incorrect. The correct answer is 'An increase in an asset account,' as asset accounts are increased by debits.