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