1
Q
What do debit entries represent
A
- increase in assets and expenses
- decreases in equity, liability and revenue
2
Q
What do credit entries represent
A
- increases in equity, liabilities and revenues
- decreases in assets and expenses
3
Q
What happens to an asset when it is used up
A
it becomes an expense
4
Q
What happens when an inventory is sold on credit in a sales revenue account
A
it is entered on credit side as a trade receivable
5
Q
Trade receivable
A
an amount owed by a customer to a business who has provided goods on credit
6
Q
Trade payable
A
an amount owed to a supplier from the business who has received goods on credit
