Chapter 4 Accounting T/F
False
"Debit" means to increase an account balance
True
A credit is an amount entered on the right side of the T account
True
A credit to an asset account will decrease the account, while a credit to a liability account will increase that account
False
Asset accounts are increased on the credit side
True
Debits and credits are used to record increases and decreases in each account affected by a business transaction
False
Double-entry accounting is the recordkeeping system in which each business transaction affects at least one account
True
Each account has a specific side that is its normal balance side
False
Every business transaction affects at least two accounts that are on different sides of the basic accounting equation
True
For every debit entry made in one account, a credit entry must be made in another account
False
If one asset account is debited for $75 and a different asset account is credited for $75, the total assets will increase by $75
True
If the accounting equation is not in balance after a transaction has been recorded, one reason may be that the debt or credit part of the transaction wasn't recorded
False
Liability and capital accounts are increased on the debit side
True
The normal balance side of an account is the same side that is used to record increases to the account
False
The normal balance side of an owner's capital account is the debit side
True
When analyzing business transactions, you should ask yourself which accounts are affected