How do credits affect liability accounts?
- Increase
- Decrease
How do debits affect the owner’s capital account?
- Increase
- Decrease
How do credits affect expense accounts?
- Increase
- Decrease
When a business pays cash for rent, do you debit or credit the cash account?
- Debit
- Credit
When a sole proprietor invests cash into a business, do you debit or credit owner’s capital?
- Debit
- Credit
When a business uses up supplies,do you debit or credit the supplies expense account?
- Debit
- Credit
How do credits affect asset accounts?
- Increase
- Decrease
How do debits affect the owner’s capital account?
- Increase
- Decrease
How do credits affect expense accounts?
- Increase
- Decrease
When a business purchases supplies on account, do you debit or credit the supplies inventory account?
- Debit
- Credit
When a sole proprietor invests cash into a business do you debit or credit owner's equity?
- Debit
- Credit
How do credits affect liability accounts?
- Increase
- Decrease
How do credits affect expense accounts?
- Increase
- Decrease
When a business receives payment from a client for services rendered, do you debit or credit fees earned?
- Debit
- Credit
When a business disburses cash to pay for supplies that were purchased on account, do you debit or credit accounts payable?
- Debit
- Credit
How do debits affect expense accounts?
- Increase
- Decrease
How do debits affect liability accounts?
- Increase
- Decrease
How do debits affect the retained earnings account?
- Increase
- Decrease
How do debits affect revenue accounts?
- Increase
- Decrease
When a business finances the purchase of a building with a bank note to acquire equipment, do you debit or credit the loan payable account?
- Debit
- Credit