Debit and Credit Quiz Chapter 2

A business uses a credit to record:

A decrease in an asset account.

A debit is used to record an increase in all of the following accounts except:

Accounts Payable

A debit is used to record which of the following:

An increase in the owner's withdrawals account.

A credit entry:

Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts.

Debit means increase and credit means decrease for all accounts.

False

Increases in liability accounts are recorded as debits.

False

A double-entry accounting system is an accounting system:

That records the effects of transactions and other events in at least two accounts with equal debits and credits.

Debits increase asset and expense accounts.

True

In a double-entry accounting system, the total dollar amount debited must always equal the total dollar amount credited.

True

A credit is used to record an increase in all of the following accounts except:

Wages Expense