C3: DEBITS & CREDITS Flashcards
The balance (debit or credit) that an account is normally expected to have.
Normal Balance
Assets, expenses, and losses normally have ___________.
Debit balances
Liabilities, shareholders’ equity, revenues, and gains normally have ___________.
Credit balances
What indicates how the account is increased in a journal entry?
The normal balance
What goes on each side of a T account?
Debits = Left
Credits = Right
What abbreviations are used for debits and credits?
DR and CR
To record an INCREASE in cash, we need to:
Debit the amount
Assets, expenses, and losses are usually ______ balances.
Debit
Credits ________ assets and __________ liabilities.
Decreases; Increases
Credits are normally on the _______ side of a T account.
Right
Liability (A/P), S/H Equity, and Revenues/Gains are usually _______ balances.
Credit
Expenses and Dividends Declared normally have a ______ balance.
DR
T/F: Revenue accounts have a debit balance.
False - CR balance
Balance is carried from one period to another if the account is ___________.
Permanent
Balance is transferred out of a temporary account at the __________________ to a permanent account.
End of the Period