Acct210 Chapter 3

An account is said to have a debit balance if:

the amount of the debits exceeds the amount of the credits.

All of the following accounts have normal debit balances except:

Service revenue

Which of the following accounts is increased by a credit entry?

Service revenue

The two-column record used to accumulate increases and decreases for individual assets, liabilities, equity, revenue, expense, and dividends items is a:

T-account.

Which of the following accounts is decreased by a debit entry?

Unearned revenue

Bellarim Corporation made cash sales to customers. What effect does this transaction have on the accounting equation?

Assets and retained earnings increase

The term for the process of recording accounting transactions in the general journal is:

journalizing.

Machinery is purchased on credit. What effect does this transaction have on the accounting equation?

Assets and liabilities increase

The purchase of office equipment on credit has what effect on the accounting equation?

Assets and liabilities increase

Which pair of accounts has the same set of rules for debit and credit entries?

. Common stock and Accounts payable

A trial balance is a(n):

. tool used to prove the equality of debits and credits in the general ledger.

Which of the following accounts is increased by a debit entry?

Equipment

A list of all asset, liability, equity, revenue, expense, and dividend accounts which are used by the company is called a:

chart of accounts.

An entry made to the right side of an account is always a(n):

credit.

Debit entries are used to:

increase asset accounts.

Credit entries are used to:

increase liability accounts