21. A revenue account normally has a debit balance.
22. Accounts are normally decreased by debits.
23. The dividends account normally has a credit balance since it is an equity account.
24. Asset accounts normally have credit balances and expense accounts normally have debit balances.
25. Common Stock normally has a debit balance.
26. A debit entry is always favorable.
27. A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.
28. A transaction that increases an asset and decreases a liability must also affect one or more other accounts.
29. If insurance coverage for the next three years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.
30. The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.
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