Accounting Chapter 2 (t/f)
true
a list of accounts used by a business is a chart of accounts
false
accounts payable accounts are increased with a debit
true
prepaid insurance is decreased with a credit
false
when cash is paid for supplies, the supplies account is increased by a credit
false
decreases to liability accounts are recorded on the credit side
true
each transaction changes the balances in at least two accounts
true
increases in expense accounts are recorded as debits because they decrease the owner's capital account
true
the balance of an account increases on the same side as the normal balance 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
true
the normal balance side of an accounts receivable account is a debit
false
to summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner's capital account
true
utilities expense is increased with a debit
true
a drawing account is increased by debits and decreased by credits
true
an accounting device used to analyze transactions is a T account
false
an amount recorded on the right side of a T account is a debit
true
asset accounts decrease on the credit side
true
cash is increased with a debit
false
common accounting practice is to record withdrawals as debits directly in the owner's capital account
false
each asset account has a normal credit balance
false
each liability account has a normal debit balance