Question

There are two accounts that are increased with debits. Please tell us what those accounts are and on which financial statement they appear. There are three accounts that are increased with credits. Please name those accounts and indicate on which financial statement they appear.

You can never have a debit without a credit. When analyzing transactions, the debits must always equal the credits.

1. Please give us an example of a transaction where there are two increases. Note that you will still need to have at least one debit and one credit. Indicate which account will be debited and which will be credited.

2. Please give us an example of a transaction where there are two decreases.   Note that you will still need to have at least one debit and one credit. Indicate which account will be debited and which will be credited.

3. Please give us an example of a transaction where there is an increase and a decrease.  Note that you will still need to have at least one debit and one credit. Indicate which account will be debited and which will be credited.

Answer 1