An accountant has debited an asset account for $500 and credited a revenue account for $1,000. What can be done to complete the recording of the transaction?
A) Debit another asset account for $500.
B) Debit a shareholders' equity account for $500.
C) Nothing further must be done.
D) Credit a different asset account for $500.

Question

Quizplus · Accepted Answer

A debit and credit must always balance each other. In this case, the $500 debit to an asset account is not offset by any other credit, leaving the accounting equation unbalanced. Therefore, another asset account must be debited for $500 to balance the transaction.

An Accountant Has Debited an Asset Account for $500 and Credited