Question: 1. Jerry believes that "dual effect" indicates that, for all transactions, one account will increase and one account will decrease. Is Jerry correct? Explain.
2. What is the normal balance (debit or credit) of assets, liabilities, stockholders' equity, revenues, and expenses?
3. Jenny has learned that assets have debit balances, while liabilities have credit balances. Based on this, she believes that asset accounts can only be debited and liabilities can only be credited. Is Jenny correct? When would we credit an asset and when would we debit a liability?