Accounting chapter 2
when $1,500 cash is received on account
accounts receivable is decreased with a credit and cash is increased with a debit
accounts receivable classification
asset
cash classification
asset
prepaid insurance classification
asset
supplies classification
asset
assets affect the decreased side how
credit
liabilities affect the increased side how
credit
liabilities affect the normal balance side how
credit
owner's equity affects the increased side how
credit
owner's equity affects the normal balance how
credit
increases in a revenue account are shown on a T account's
credit side
the right side of the T account is the
credit side
a drawing account is decreased by debits and increased by credits
false
accounts payable accounts are increased with a debit
false
an amount recorded on the left side of a T account is a credit
false
asset accounts increase on the credit side
false
cash is increased with a credit
false
common accounting practice is to record withdrawls as debbits directly in the owners capital account
false
increases to liability accounts are recorded on the debit side
false
the left side of an asset account is the credit side because asset accounts are on the left side of the accounting equation
false
the normal balance side of an accounts receivable account is credit
false
to summarize withdrawal information seperately from the other records, owner withdrawal transactions are recorded in the owner's capital account
false
when the owner invests cash in a buisness, the owner's capital acccount is
increased by a debit
accounts payable classification
liability
matt cooper drawing classification
owner's equity
matt cooper, capital classification
owner's equity
rent expense classification
owner's equity
sales classification
owners equity
when cash is received from sales, the change in owner's equity is usually
recorded in a seperate revenue account
if an amount is recorded on the side of a T account opposite the normal balance side,
the account balance is decreased
each asset account has a normal debit balance
true
each liability account has normal credit balance
true
each transaction changes the balances in at least 2 accounts
true
increases in expense accounts are recorded as debits because they decrease the owners capital account
true
prepaid insurance is decreased with a credit
true
the balance of an account increases on the same side as the normal balance side
true
when cash is paid for supplies, the supplies account is increased by a debit
true
assets affect the increased side how
debit
assets affect the normal balance how
debit
liabilities affect the decreased side how
debit
owner's equity affects the decreased side how
debit
the normal balance side of an asset account is the
debit side
the normal balance side of any expense account is the
debit side
when a buisness pays cash on account, a liability account is
decreased by a debit
a list of accounts used by a buisness is a chart of accounts
true
advertising expense is increased with a debit
true
an accounting device used to analyze transactions is a T account
true