Identify the effect of the account titles in the following transaction choose from the word inside the parenthesis. Support your answer. 1. If assets are recorded on the debit it (increases or decreases)? Why? 2. If liabilities are recorded on the debit side, (increases or decreases)? Why? 3. What happen to capital if there is an income? (increases, decreases)? Why? 4. What happen to capital if there is an expense? (increases, decreases)? Why? 5. If there is an owners' drawing, it is (deducted or added) to capitai? Why?

Identify the effect of the account titles in the following transaction choose from the word inside the parenthesis. Support your answer. 1. If assets are recorded on the debit it (increases or decreases)? Why? 2. If liabilities are recorded on the debit side, (increases or decreases)? Why? 3. What happen to capital if there is an income? (increases, decreases)? Why? 4. What happen to capital if there is an expense? (increases, decreases)? Why? 5. If there is an owners' drawing, it is (deducted or added) to capitai? Why?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 2QY: Which of the following statements is correct? a. Increases to cash are shown on the right side of...

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