Double Entry Principle

An asset account is increased with a...

• Credit

• Debit

Equipment is sold for cash

• Assets increase and decrease

• Assets and Liabilties Increase

A decrease to accounts payable is a

• Debit

• Credit

The right hand side of a "T" account is called

• Debit

• Credit

The total of the debit values recorded must equal the total of the credit values recorded.

• False

• True

A business is started with the injection of $10,000 in cash. In which account is the credit entry made?

• Cash

• Capital

A business purchases equipment cash. In which account is the debit entry made? 

• Cash

• Equipment

Every transaction must have at least one debit and one credit entry.

• True

• False

The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?

• Debit Bank and Credit Capital

• Debit Capital and Credit Bank

• Debit Capital and Credit Jack

• Debit Jack and Credit Bank

Sold equipment by cash $700. What is the double entry to record this transaction?

• Debit Cash and Credit Sales

• Debit Cash and Credit Equipment

• Debit Equipment and Credit Cash

• Debit Sales and Credit Equipment