Debits and Credits

Kabu Gadgets has provided the following financial elements for the closing entries to the income summary. What is the total amount of the debits from the income statement?

$68,740

The entry to record a payment of a liability would include which of the following?

A credit to cash to decrease assets

Which of the following statements about debits and credits is false?

A debit decreases assets; credits increase assets

The company pays its telephone bill for the month. Which of the following is true?

Expenses increase with a debit to "telephone expense."

When recording the entry to recognize revenue earned from a client who will pay when invoiced, the entry should ______________________.

Increase accounts receivable with a debit and increase service revenue with a credit

_____ have/has a normal credit balance.

Liabilities

Which of the following statements is incorrect?

Revenues have a negative effect on owner's equity

Which of the following statements regarding T accounts is true?

T accounts reflect increases and decreases to a single account

Which of the following is true about debits and credits?

They are always on opposite sides of the T account. They are ways that you increase and decrease accounts

Which of the following statements about debits is false?

Debits increase revenue, liability, and equity accounts

______have/has a normal debit balance

Assets

Which of the following statements about credits is false?

Credits always decrease account balances

Which statement accurately describes the effect on the accounting equation when the owner contributes cash to the business?

The cash asset increases with a debit, and owner's equity increases with a credit

Which of the following is true when the owner withdraws cash from the business?

The cash asset will decrease with a debit, and owner's equity will decrease with a credit

Which of the following entries is correct when a company purchases a new computer for the business with cash?

The computer asset increases with a debit while the cash asset decreases with a credit