Test chapter 4 help in Accounting(#1-12 is true or false, the rest are questions)

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What are some liabilites?

Accounts Payable, and Loans

What are some assets?

Accounts Receivable, Equipment,Furniture, Building

True or False: " Debit" means to increase side of an account.

False

True or False: A credit to a liability account decreases the account balance.

False

True or False: A debit to one asset account and a credit to another asset account will result in the basic accounting equation being out of balance.

False

True or False: Credit means to decrease a liability.

False

True or False: Liabilities are decreased on the credit side.

False

True or False: The left side of a T-Account is always the credit side.

False

True or False: The right side of a T- Account is always the debit side.

False

what is Normal balance?

It records increases to the account, the word NORMAL in this case means USUAL

What does Revenue mean?

Profit

What are some owner's equity?

Revenue, Expense, Capital, Withdrawl

True or False: Assets are increased on the debit side.

True

True or False: Capital is increased on the credit side.

True

True or False: For every debit there must be an equal credit.

True

True or False: The basic accounting equation may be expressed as A-L= OE

True

True or False: The normal balance side for an asset account is the debit side.

True

what is a T- Account?

an efficient tool for using double- entry accounting

what is a debit?

an entry on the left side of an account

what is a credit?

an entry on the right side of an account

what is a Ledger?

often referred to as as the general ______

Where is the account name on a T- Account?

on the top

what is a double- entry accounting?

system to analyze and record a transaction, recognizes the different sides of business transactions as debits and credits

What do you do with debit and credit for Owner's Equity?

Debit would be decreased, and credit would be increased

What do you do with debit and credit with cash?

Debit would be increased and credit would be decreased

What is the number system for preparing a chart of accounts?

Assets accounts begin at 1 Liability accounts begin with 2 Owner's equity accounts begin with 3 Revenue accounts begin with 4 Expense accounts begin with 5

What does CR stand for?

Credit

What are the three rules for debit and credit?

1. Increase on Debit side 2. Decrease on Credit side 3. Normal balance will be on the side that increases

What does DR stand for?

Debit

what is a Chart of Accounts?

a list of all accounts used by a business

What does every account have?

a t- account

What do you do with debit or credit with accounts payable?

debit would be decreased and credit would be increased

Where does the normal balance go on the Asset account?

the left side

Where does the normal balance go on the Liability and Owner's Equity account?

the right side


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