Withdrawals increase on the debit side of the account.
79) After deciding which accounts are affected, the next step in analyzing a transaction is to determine to which categories the accounts belong.
80) Equipment is an example of a liability.
81) A compound entry is when more than one transaction occurs.
82) When the owner invests computer equipment in the business, cash is increased.
83) Accounts Receivable indicates amounts owed to us by our clients or customers.
84) Accounts Payable indicates monies owed to us by our clients or customers.
85) Expenses are recorded when paid.
86) Accounts Payable is an asset account that is increased on the credit side.
87) The Supplies account is increased by a debit.
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