Bluetick1010

Although T accounts with debits and credits is as mentioned beyond the scope of the exam, I think you should have knowledge of debits and credits and how it impacts asset, liability, income, expense, and equity accounts.

i.e.

a DEBIT will INCREASE the balance in the following accounts: Asset, Expense, Equity
a CREDIT will INCREASE the balance in the following accounts: Liability and Income

and vice versa.



Edited 2 time(s). Last edit at Wednesday, February 17, 2010 at 01:12PM by johnnybogey.