Accounting 1A

False

A debit to an expense account and a credit to a capital account will result in the basic accounting equation being out of balance.

Permanent accounts

Accounts that are used to record information continuously from one accounting period to the next are called

True

Expenses are decreased on the credit side.

Debit side

Left side

Revenue account

Record business income only

Credit side

Right side

False

Debits decrease the withdrawals account.

Withdrawal

An amount of money taken out of the business by the owner is a

Temporary capital account

Are used to record information for only one accounting period

Expense account

Are used to record the cost and services used by a business

False

"Credit" means the increase side of an account.

True

A credit to an expense account decreases the account balance.

True

Capital is always increased by credits.

Revenue recognition principle

Recognizing and recording revenue on the date it is earned even if cash has not been received on that date is known as the

True

Revenue is increased on the credit side.

True

The basic accounting equation may be expressed as A= L+ OE.

False

The left side of a T account is always the debit side.

True

Withdrawals are increased on the debit side.

Assets

Debit + Credit - Normal balance= debit

Liabilities

Debit - Credit + Normal balance= credit

Owners equity

Debit - Credit + Normal balance= credit

False

The normal balance side for a revenue account is the debit side.

False

You may have two debits and one credit as long as the amounts are equal.