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Debit or Credit

Use the diagram to answer each question with debit or credit.

T Account diagram:

A T Account Diagram that reads ADE = CLR DEA = LRC on the left block D is increasing whilst C is decreasing and on the right block it is vise versa.

Table form of the T Account diagram
ADE (Asset, Drawing, Expense) = CLR (Capital, Liability, Revenue)

Debits Increase

Credits Decrease

Credits Increase

Debits Decrease
  1. Will a Debit or Credit increase the balance in Assets?
    1. Debit
    2. Credit

    Answer: a. Debit

  2. Will a Debit or Credit increase the balance in Revenue?
    1. Debit
    2. Credit

    Answer: a. Credit

  3. Will a Debit or Credit decrease the Expense balance?
    1. Debit
    2. Credit

    Answer: a. Credit

  4. Will a Debit or Credit decrease the balance in Liabilities?
    1. Debit
    2. Credit

    Answer: a. Debit

  5. What is the normal balance of Assets?
    1. Debit
    2. Credit

    Answer: a. Debit

  6. What is the normal balance of Revenue?
    1. Debit
    2. Credit

    Answer: b. Credit

  7. Will a Debit or Credit increase the balance in Capital?
    1. Debit
    2. Credit

    Answer: b. Credit

  8. What is the normal balance of the Capital account?
    1. Debit
    2. Credit

    Answer: a. Credit

  9. The business receives Cash. Cash is an Asset. Will you Debit or Credit the Cash account?
    1. Debit
    2. Credit

    Answer: b. Debit, Cash is increasing.

  10. The business made a Sale. Sales is a Revenue. Will you Debit or Credit the Sales account?
    1. Debit
    2. Credit

    Answer: a. Credit, Sales are increasing.

If you missed more than 3 go back and review the lesson again.