Indicate Whether Each of the Following Changes in Accounts Would

question 15

Essay

Indicate whether each of the following changes in accounts would be a debit (D) or credit (C) entry.
___To decrease Cash
___To increase Owner, Capital
___To decrease Accounts Payable
___To increase Salaries Expense
___To decrease Equipment
___To increase Revenue
___To decrease Accounts Receivable
___To increase Owner, Drawing
___To increase Prepaid Insurance
___To increase Accounts Payable

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Definitions:

Debt

An amount of money borrowed by one party from another under the condition that it is to be repaid, usually with interest.

Net Profit Margin

A profitability ratio that measures the percentage of each sales dollar that remains as profit after all expenses, including taxes, have been paid.

Net Income

The total profit of a business after subtracting all expenses from total revenues.

Operating Income

The profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.