Chapter 2 Review(Test A)
Accounts Payable accounts are increased with a debit.
F
An amount recorded on the right side of a T account is a debit.
F
Common accounting practice is to record withdrawals as debits directly in the owner's capital account.
F
Decreases to liability accounts are recorded on the credit side.
F
Each asset account has a normal credit balance.
F
Each liability account has a normal debit balance.
F
The left side of an asset account is the credit side because asset accounts are on the left side of the accounting equation.
F
To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner's capital account.
F
When cash is paid for supplies, the Supplies account is increased by a credit.
F
A drawing account is increased by debits and decreased by credits.
T
A list of accounts used by a business is a chart of accounts.
T
Asset accounts decrease on the credit side.
T
Cash is increased with a debit.
T
Each transaction changes the balances in at least two accounts.
T
Increases in expense accounts are recorded as debits because they decrease the owner's capital account.
T
Prepaid Insurance is decreased with a credit.
T
An accounting device used to analyze transactions is a T account.
True
The balance of an account increases on the same side as the normal balance side.
T
The normal balance side of an Accounts Receivable account is a debit.
T
Utilities Expense is increased with a debit.
T
