Accounting I-Chapter 2 Review

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

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

(A) debit side

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

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

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

Amounts to be paid in the future for goods or services already acquired

Accounts Receivable

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

Forensic Accountant

An accountant who combines accounting and investigating skills to uncover suspected fraudulent business activity or to prevent such activity

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

Normal Balance

The side of the account that is increased