Question: State whether the following are true or false. If false, explain why. (a) We debit cash received, but credit cash paid. (b) Revenue is debited

State whether the following are true or false. If false, explain why.

(a) We debit cash received, but credit cash paid.

(b) Revenue is debited to a revenue account, but purchases are credited to a purchases account.

(c) If a business purchases a car for cash we debit the car account and credit the bank account.

(d) Purchases, hotel, electricity and wages are all debits in a trial balance.

(e) Revenue, rent paid and equity are all credits in a trial balance.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

True or false a True b False We credit ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Introducing Accounting Questions!