Impact of Debit and Credit for each Financial Statement Account
To understand double entry accounting, you should understand how a debit or credit impacts each financial statement account (income statement and balance sheet).
You need to ask yourself…
…“Does a debit increase or decrease the account?.
.. Does a credit increase or decrease an account? “
The Universal CPA team maintains a list of the impact by account, which can be found in the excel sheet linked below:
You can find a listing of 100+ journal entries that are commonly seen on the CPA exam at this link.
As always, the Universal CPA Review team has your back when it comes to studying for the CPA exam or tackling accounting concepts for your college courses or career!
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