For this question, review the journal entry and explain what the probable transaction would be requiring the entry, and how this entry is impacting the financial statements. Explaining that account x is a debit/credit etc is not an acceptable answer. Explanation should cover the actual transaction that occurred.

Example Question:

Utilities Expense700

Cash700

An acceptable answer would be: Client paid current months utility bill, asset is decreasing, and net worth is decreasing.

____________________________________________________________ Question:

Accounts Receivable	8,000 debit
Services Revenue	8,000 credit