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