Financial Accounting > EXAM > acc 205 week 1 Discussion 1.,CORRECT ANSWERS. (All)

acc 205 week 1 Discussion 1.,CORRECT ANSWERS.

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What accounts are included in each of the six major groups of accounts? 1. Assets 2. Expenses 3. Owner, Withdrawals 4. Liabilities 5. Revenues 6. Owner, Capital State the normal balance of ... each of the six major groups. A normal balance that is” appears on the side either debit or credit where we record an increase in the account’s balance.” (Miller-Nobles, Mattison, & Matsumura 2018) Assets, expenses, and owner withdrawals all show a debit as a normal balance. But liabilities, revenues, and owner capital all show normal balance as a credit. What effect do debit and a credit have on each major group? A Debit and credits can impact an account by either decreasing or increasing it. A credit will decrease an account, but a debit will increase an account. The three accounts that are increased by debits and decreased by credits, and they are assets, expenses, and dividends, with equity, revenue, and liability. They will be decreased by debits and decrease the balance of the account. But credits will increase the account balance. How might an imbalance in debits and credits impact a business? According to our text “, a non-normal account balance will indicate an error for the specific account and can give an incorrect ending balance for the trial balance” (Miller-Nobles, Mattison, &Matsumura,2018). A trial balance is not a formal financial statement; it is only a self- check to make sure that your debits equal your credits. [Show More]

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