Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Paid employees' salaries
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Question

Quizplus · Accepted Answer

When paying employees' salaries, the company incurs an expense, so it debits the expense account. The payment reduces cash, an asset, so it credits the asset account.

Match Each of the Numbered Transactions of a Corporation with Effect