108. Debits decrease asset accounts.
109. An increase to a liability account is recorded with a credit entry.
110. Double entry accounting requires that every entry must include at least one debit and at least one credit.
111. To record the acquisition of office supplies on account, an accountant would credit Office Supplies.
112. When a company receives cash in advance from a customer, it should debit Cash and credit Accounts Receivable.
113. To record an asset source transaction, an asset account would be credited and a liability or equity debited.
114. The type of transaction that would be represented by a debit to one asset and a credit to another is an asset source transaction.
115. The three primary asset use transactions are incurring expenses, settling liabilities, and paying dividends.
116. For a corporation, payment of dividends is recorded as an expense.
117. Many companies choose to end their fiscal years during a part of the year when they expect low activity.