Accounting Equation and T-Accounts Flashcards
1
Q
What is the accounting equation
A
Assets = Capital - Liabilities
2
Q
What is debit and credit
A
Debit and Credit are JUST left and right
3
Q
What acronym do we use to remember debit and credit
A
DEAD CLIC
4
Q
What does DEAD stand for
A
Debit
Expenses
Assets
Drawings
5
Q
What does CLIC stand for
A
Credit
Liabilities
Income
Capital
6
Q
How do you increase a debit T-account
A
Debit it
7
Q
How do you increase a credit T-account
A
Credit it
8
Q
How do you reduce a debit T-account
A
Credit it
9
Q
How do you reduce a credit T-account
A
Debit it
10
Q
How is a T-Account laid out
A
Debit on the Left Credit on the Right.
11
Q
What do we include in a T-account
A
Date, Reference, Linked T-account, Value.
