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