Debits & Credits

Two problem sets, one hidden answer key

Every scenario below is a plain-English event — "Increase Cash," "Accrue Wages Payable." The job is always the same two steps: figure out whether it hits an Asset, Liability, or Equity account, then let that tell you whether it's a debit or a credit.

• Problem 1 covers the basics: an asset purchase, a loan, share capital, a simple expense.
• Problem 2 is a full quarter at Brightline Manufacturing — a credit sale, prepaid insurance, accrued wages, depreciation, a note payable, and a declared dividend — each one solved and explained.

Assets and expenses normally carry debit balances. Liabilities, equity, and revenue normally carry credit balances. Once you know the account type and the direction, the debit/credit call follows automatically.

Using the calculator

1. For each numbered scenario, open the dropdown under Classify and pick Asset, Liability, or Equity.
2. Open the dropdown under Debit or Credit and pick one.
3. The Check column answers instantly — ✓ Correct or ✗ Try again — checked against a hidden answer key.