GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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DC DEALER
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DE ADLER
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DC DEALR
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NONE OF THE ABOVE
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Detailed explanation-1: -Debits and credits indicate where value is flowing into and out of a business. They must be equal to keep a company’s books in balance. Debits increase the value of asset, expense and loss accounts. Credits increase the value of liability, equity, revenue and gain accounts.
Detailed explanation-2: -Remember “DEALER” DEALER is the first letter of the five types of accounts plus dividends. DEA is for dividends, expenses, and assets that increase with debits. LER is for liabilities, equity, and revenue that increase with credits. Hint: if an account takes a debit to increase, it has a normal debit balance.
Detailed explanation-3: -Here is a study tip for you for the accounting equation – The Accounting Equation (DEALER): Dividends + Expenses + Assets = Liabilities + Owner’s Equity (beginning) + Revenues (DEALER)