Answer the following questions. Consider each question separately:
1. When you deposit money in your bank account, the bank credits your account. Is the bank misusing the word credit in this context? Why does the bank use the term credit to refer to your deposit, and not debit?
2. Explain the advantages of double-entry bookkeeping over single-entry bookkeeping to a friend who is opening a used book store.
3. Your friend asks, "When revenues increase assets and expenses decrease assets, why are revenues credits and expenses debits and not the other way around?" Explain to your friend why revenues are credits and expenses are debits.