Accounting Chapter 2

An amount recorded on the Left side of a T account is a (A) Debit (B) Credit (C) Normal Balance (D) None

A- debit

Decreases in any liability account are shown on a T account's (A) Debit (B) Credit (C) Right Side (D) None

A- debit

Increases in an asset account are shown on a T account's (A) Debit (B) Credit (C) Right Side (D) None

A- debit

The normal balance side of an owner's drawing account is the (A) Debit (B) Credit (C) Left Side (D) None

A- debit

The normal balance side of any asset account is the (A) Debit (B) Credit (C) Right Side (D) None

A- debit

The normal balance side of any expense account is (A) Debit (B) Credit (C) Right Side (D) None

A- debit

An amount recorded on the right side of a T account is a (A) Debit (B) Credit (C) Normal Balance (D) None

B- credit

Decreases in an asset account are shown on a T account's (A) Debit (B) Credit (C) Normal Balance (D) None

B- credit

Increases in a revenue account are shown on a T account's (A) Debit (B) Credit (C) Left Side (D) None

B- credit

The normal balance side of an owner's capital account is the (A) Debit (B) Credit (C) Left Side (D) None

B- credit

The normal balance side of any liability account is the (A) Debit (B) Credit (C) Left Side (D) None

B- credit

Debits must equal credits (A) In a T account (B) on the equation's left side (C) on the equation's right side (D) for each transaction

D- for each transaction

A drawing account is decreased by debits and increased by credits.

F

Accounts payable accounts are increased with a debit.

F

All owner's equity accounts are increased on the credit side because the owner's capital account has a normal balance on the credit side.

F

An amount recorded on the left side of a T account is a credit.

F

Asset accounts increase on the credit side.

F

Cash is an asset account with a normal credit balance.

F

Increases in revenue accounts are recorded as debits because they increase the owner's capital account.

F

Sandra Stern, Capital is decreased with a credit.

F

The left side of a liability account is the normal balance side because liabilities are on the left side of the accounting equation.

F

The balance of an account decreases on the side opposite the normal balance side.

T

The normal balance side of an accounts payable account is a credit.

T

When cash is paid for supplies, the supplies account is increased by a debit.

T

An accounting device used to analyze transactions.

T account

The side of the account that is increased.

normal balance

The normal balance side of any expense account is the (A) Debit (B) Credit (C) Right Side (D) None

A- debit

The values of all things owned (assets) are on the account equation's (A) Left Side (B) Right Side (C) Credit Side (D) None

A-left side

The normal balance side of any revenue account is the (A) Debit (B) Credit (C) Left Side (D) None

B- credit

The values of all equities or claims against the assets (liabilities and owner's equity) are on the accounting equation's (A) Left Side (B) Right Side (C) Debit Side (D) None

B-right side

A list of accounts used by a a business.

Chart of Accounts

Common accounting practice is to record withdrawals as debits directly in the owner's capital account.

F

Accounts receivable accounts are increased with a debit.

T

Advertising expense is increased with a debit.

T

An accounting device used to analyze transactions is a T account.

T

Before a transaction is recorded in the records of a business, it is analyzed to determine which accounts are changed and how.

T

Businesses use accounts to summarize all the information pertaining to a single item.

T

Each asset account has a normal debit balance.

T

Each liability account has a normal credit balance.

T

Each transaction changes the balances in at least two accounts.

T

Increases in expense accounts are recorded as debits because they decrease the owner's capital account

T

Prepaid insurance is decreased with a credit.

T

Sandra Stern, Drawing is decreased with a credit.

T

Owner's Drawing (classification, normal balance, increase side, debit side)

drawing, debit, debit, credit

Advertising Expense (classification, normal balance, increase side, debit side)

expense, debit, debit, credit

Rent Expense (classification, normal balance, increase side, debit side)

expense, debit, debit, credit

Accounts Payable (classification, normal balance, increase side, debit side)

liability, credit, credit, debit

Owners Capital (classification, normal balance, increase side, debit side)

owners equity, credit, credit, debit

A list of accounts used by a business is a chart of accounts.

T

Accounts Receivable (classification, normal balance, increase side, debit side)

asset, debit, debit, credit

Cash (classification, normal balance, increase side, debit side)

asset, debit, debit, credit

Office Equipment (classification, normal balance, increase side, debit side)

asset, debit, debit, credit

Prepaid Insurance (classification, normal balance, increase side, debit side)

asset, debit, debit, credit

Supplies (classification, normal balance, increase side, debit side)

asset, debit, debit, credit

An amount recorded on the left side of a T account.

debit

An amount recorded on the right side of a T account.

credit