Chapter 2 -Analyzing Transactions into Debit and Credit Parts Review

The normal balance side of any liability account is the____ (A) debit side (B) credit side (C) left side (D) none of these.

(B) credit side

The normal balance side of any revenue account is the__________ (A) debit side (B) credit side (C) left side (D) none of these.

(B) credit side

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 of these.

(B) right side

NORMAL BALANCE

The side of an account that is increased is called the normal balance of the account.

An amount recorded on the left side of a T account is a______ (A) debit (B) credit (C) normal balance (D) none of these.

(A) debit

Increases in an asset account are shown on a T account's_____ (A) debit side (B) credit side (C) right side (D) none of these.

(A) debit side

Increases in an expense account are shown on a T account's____________ (A) debit side (B) credit side (C) right side (D) none of these.

(A) debit side

Increases in an owner's drawing account are shown on a T account's___________ (A) debit side (B) credit side (C) right side (D) none of these.

(A) debit side

The normal balance side of an owner's drawing account is the__________ (A) debit side (B) credit side (C) right side (D) none of these

(A) debit side

The normal balance side of any asset account is the_____ (A) debit side (B) credit side (C) right side (D) none of these.

(A) debit side

The normal balance side of any expense account is the_______ (A) debit side (B) credit side (C) right side (D) none of these.

(A) debit side

The values of all things owned (assets) are on the accounting equation's____ (A) left side (B) right side (C) credit side (D) none of these.

(A) left side

An amount recorded on the right side of a T account is a_____ (A) debit (B) credit (C) normal balance (D) none of these.

(B) credit

Decreases in an asset account are shown on a T account's____ (A) debit side (B) credit side (C) left side (D) none of these.

(B) credit side

Increases in a revenue account are shown on a T account's_______ (A) debit side (B) credit side (C) left side (D) none of these.

(B) credit side

Increases in any liability account are shown on the T account's_________ (A) debit side (B) credit side (C) left side (D) none of these.

(B) credit side

The normal balance side of an owner's capital account is the____ (A) debit side (B) credit side (C) left side (D) none of these.

(B) credit side

Decreases in any liability account are shown on a T account's___________ (A) debit side (B) credit side (C) right side (D) none of these.

(C) right side

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.

CHART OF ACCOUNTS

A list of accounts used by a business.

ACCOUNTS PAYABLE

Amount to be paid in the future for goods or services already acquire.

ACCOUNTS RECEIVABLE

Amounts to be received in the future due to the sale of goods or services.

T ACCOUNT

An accounting device used to analyze transactions.

DEBIT

An amount recorded on the left side of an account.

CREDIT

An amount recorded on the right side of an account.

The Accounting Equation is usually expressed as_______________

Assets = Liabilities + Owners' Equity

Cash Debit Credit: Normal Balance:

Debit: Increase Credit: Decreases Normal Balance: Debit

Accounts Payable-Sawyer Supplies Debit: Credit: Normal Balance:

Debit:Decreases Credit: Increases Normal Balance: Credit

When the company provided services but is not yet paid, owners' equity increases by the amount of the revenue, and ________ .

assets increase

When the owner invests more cash in the business____________

both Assets and Owners' Equity increase

When the owner withdraws cash from the business for personal use total owners' equity ________ .

decreases

When the owner withdraws cash from the business for personal use, this is called a ________ .

drawing

Which of these transactions shown in this video causes the Accounting Equation to go out of balance: a. Investing cash in the business b. Purchasing equipment c. Selling services d. Withdrawing cash from the business e. None of these

e. None of these

When a customer pays cash for the company's services, total Owners' Equity__________

increases

When the company pays cash for an expense, assets decrease and ________ .

owners' equity decreases

When the business spends cash to purchase new equipment, total Assets_____________

stays the same

When the company is eventually paid for services performed in the past, ________ .

total assets stay the same