Liability Accounts - Equity Accounts - T-Account, Double entry accounting

6 important questions on Liability Accounts - Equity Accounts - T-Account, Double entry accounting

What does understanding a T account help with?

Helps you understand … “How money moves in an organization” “How businesses track money, how businesses spot trends, how businesses gage their own financial health”

What does Credit mean in a T account?

  • Crediting means entering amounts on the Right side of the T account
  • The right side of the T account.

What do the terms debit and credit alone not indicate?

The term debit and credit alone do not indicate an increase or decrease.
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What is a Zero balance?

Total debits equal total credits

How do T-accounts increase with Debits?

  • DEA: Dividends Expenses Assets. DEA increases the T accounts’s Debit
  • Normal side is the debit side

How do T-accounts increase with Credits?

  • Liabilities Revenues and Common Stock increase the T accounts’s Credits
  • Normal side is the credit side

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