Ch. 5 Transactions that Affect Revenue, Expenses, and Withdrawals

Lesson Overview

Revenues, expenses, and withdrawals are temporary accounts. Double-entry accounting requires that total debit and total credits are always equal.

• Explain the difference between permanent accounts and temporary accounts.

• List and apply the rules of debit and credit for revenue, expense, and withdrawals accounts.

• Use the six-step method to analyze transactions affecting revenue, expense, and withdrawals accounts.

• Test a series of transactions for equality of debits and credits.