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What is the charge?
A charge is a transaction that debits your cash. You are charged when you go to a retail store to make a purchase.
Are Liability accounts are increased by debits?
No Liabilities will not be increased they will be decreased by debits
Are accounts normally decreased by debits?
All credit accounts are decrease by debits while all debit accounts are increased by debits and vice versa.
When a customer returns merchandise purchased on credit the retailer debits?
1. Debits Sales Returns, credits Cash 2. Debits Inventory, credits COGS
What is done to check the equality of debits and credits?
done to check the equality of debits and credits
When a company records depreciation it debits?
debits expense accounts and credits contra accounts
Are decreases in liabilities recorded as debits or credits?
Debits. Liabilities have credit balances so a debit will reduce such a balance.
What if Trial balance debits and credit equals?
If you do a Trial Balance and your Credits Equal your Debits, then more than likely your books are correct.In double entry accounting the debits and credits must balance or be equal.
What are debits used to record?
assets
How do you read a balance sheet?
A balance sheet should be equal debits and credits at the end of it. Your debits are what you spend. Money on expenses or just about anything. Credits is assets/money/capital credited to accounts. Credits must equal the debits.
Debits are entered on what side of the general ledger?
Debits are entered on the left hand side of the ledger and therefore Credits are on the right hand side.
How are credits distinguished from debits in the journal?
By indenting
