Bookkeeping Basics Practice Test 2026 - Free Bookkeeping Practice Questions and Study Guide

When you charge advertising on a Visa card, you’ve incurred an expense and created a payable to the card issuer. In double-entry terms, you debit Advertising expense to record the cost of the ad, and you credit Visa to show the liability to the credit card company. Cash isn’t affected yet because you haven’t paid cash at the moment of the charge, and the other options don’t fit because this is an expense, not revenue, and it doesn’t involve a cash outlay or a fixed asset.