Quick Check and Quiz Answers -- Chapter Two

Quick Check and Quiz Answers -- Chapter Two - Chapter two...

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Unformatted text preview: Chapter two quick check (pages 87&88) and quiz (pages 97 99): There are several ways to memorize the accounts natural balance. First you must remember that debits are entries on the left and credits are entries on the right. Second, remember that the side that increases an account is the normal balance side. Third, visualize the fundamental accounting equation: Assets = Liabilities plus Owners equity. Entries on the left (debits) increase accounts on the left (assets) while entries on the right (credits) increase accounts on the right (liabilities and owners equity). Revenues, expenses, and dividends are a bit more difficult. You have to think how they affect owners equity. Revenues increase owners equity and are increased by entries on the right (credits) the same as owners equity. Expenses and dividends decrease owners equity and are increased with entries on the left (debits)....
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Quick Check and Quiz Answers -- Chapter Two - Chapter two...

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