Debit or Credit? (ACCA FA)

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   An increase in an asset is recorded as a debit.

2. Statement is true

   No

   Statement

   An increase in a liability is recorded as a debit.

3. Statement is true

   Yes

   Statement

   An increase in income is recorded as a credit.

4. Statement is true

   Yes

   Statement

   Every transaction affects at least two accounts.

5. Statement is true

   Yes

   Statement

   Total debits must always equal total credits.

6. Statement is true

   No

   Statement

   Drawings increase owner's equity.

Instructions

True if the statement follows double-entry rules.