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The right side of an account is called the debit side.

If the common stock account had a $10,000 credit balance at the beginning of the period, and during the period, stockholders invest an additional $5,000, the balance in the common stock account listed on the trial balance will be equal to a debit balance of $5,000.

The Dividends account is normally closed by debiting it.

Select the account below that normally has a credit balance.

An account’s balance is the difference between the total debits and total credits for the account, including any beginning balance.

The materiality constraint looks at both the importance and relative size of an amount.

Each adjusting entry will affect a balance sheet account.

Under the net method of recording purchases, the Discounts Lost account is used when the purchaser fails to take a discount offered by the seller.

The accounting equation can be restated as: Assets – Equity = Liabilities.

During the month of July, Clarkson Industries issued a check in the amount of $845 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should: